Uncertainties on EDR, keeps investors at bay

By First Capital Research
The secondary market continued to entice a dull sentiment from previous sessions, largely on the back of the prevailing uncertainty surrounding external debt restructuring, which kept investors on the sidelines. 
During the day, limited transactions and thin trades were observed, mainly on the belly-end of the curve, with more liquid 01.08.26 recording trades at 11.15 percent whilst 15.09.27 and 15.05.30 maturities witnessed several trades at 12.00 percent and 12.30 percent, respectively. 
Meanwhile, on the external front, the Sri Lankan rupee depreciated for the fifth consecutive session and recorded at Rs.302.00 per US dollar whilst the AWPR, which saw a small uptick in last week to 10.63 percent, bounced back to the downward trend and recorded at 10.41 percent for the week ended on April 19, 2024. 
Meanwhile, private sector credit for the month of February 2024 improved marginally by Rs.7.3 billion, reversing the contraction recorded in January 2024 of Rs.52.2 billion. 
Furthermore, foreign holdings of government securities improved during the week in concern by Rs.3.9 billion to Rs.89.3 billion.