Colombo bourse bounced back during today’s proceedings and recorded a gain of c.1.1% after the appointment of multi-party cabinet which brought stability to political picture of the country.
However, cautious level of investor activity was seen during the day as shortage of fuel in the country together with the downgrade of foreign currency issue rating to restricted default by Fitch (as Sri Lanka missed USD 78.0Mn coupon payment on two bonds) added to the woes of the investor.
Meanwhile, market recorded a modest turnover of LKR 2.0Bn for the day. Keeping up with the previous trend, Transportation segment led the daily aggregate turnover with a contribution of c.46% whilst Capital Goods segment contribution was c.12%. Meanwhile, foreign investors were net buyers for the day with net purchases of LKR 91.8Mn.
Meanwhile in the bond market yields were held still amidst limited activities. The secondary market yield curve remained broadly unchanged while overall market witnessed limited activities with ultra-thin volumes. In the midst of slight buying interest, 01.06.25 and 01.05.27 maturities traded at 22.75% and 21.50% respectively.
Courtesy: First Capital Research
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