The treasury of Sri Lankas first development bank snapped up bulk of a two index linked commercial paper issues this week, betting that the stock market would not move up in the next three months.
The two Rs. 50 mn issues by LOLC and Mercantile Leasing closed Tuesday, when the All Share Price Index (ASPI) of the Colombo Stock Exchange was 1046.rn
rnDFCC Bank bought Rs. 60 mn worth of paper from the two index linked paper issues.rn
rnThe risk averse state retirement fund ETF, which bought Rs. 30 mn, remained neutral, buying Bull and Bear commercial paper in equal quantities; while Union Assurance, which bought Rs.10 mn of paper, was bullish.rn
rnldblquote We took a view that the market will not move up in the near future,
dblquote says DFCC Banks Treasurer Dheerendra Abeyratne.rn
rnThe paper is linked to the All Share Price Index of the Colombo Stock Exchange and was issued on the 10th anniversary of the first commercial paper issue in Sri Lanka.rn
rnldblquote We now have sophisticated invest