Home Market Political revamp stirs positive investor sentiment

Political revamp stirs positive investor sentiment

  • 12 May 2022
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Bourse thrived in the green following the market closure of 2 days as investors displayed an optimistic sentiment with expectations on stability in light of the recent changes on the political front, alongside the appointment of a new PM.

Index opened with a sharp uptrend and continued the gaining momentum throughout the session as investors indulged on a buying spree. Eventually, with the large contribution of counters such as EXPO and HAYL, the market closed in the green at 7,755 with a 2-week high intraday gain of 238 points.

Turnover of LKR 1.2Bn was led by a joint contribution of 51% from Transportation sector and Food, Beverage & Tobacco sector. Foreign investors remained net sellers while recording low participation.

Bond yields continue to stay still

 In the midst of mounting uncertainties, the secondary market yield curve remained broadly unchanged. Meanwhile, at the bond auction, only 91% of the total offered amount of LKR 35.0Bn got accepted with the weighted average yields of 01.06.25 and 01.05.27 maturities at 23.53% and 22.69%, respectively.

Courtesy: First Capital Research

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