Bourse rallied for the fourth straight day, while recording the highest turnover in 2 ½ -months as investor sentiment improved with the announcement of the confirmation on the timeline of IMF staff level agreement stated by the President.
Moreover, results reported by the announced dollar earnings and plantation counters also fueled investor confidence. In response to that, index started off on a solid footing and maintained its steep upward trajectory throughout the session and closed for the day at a 2-months high of 7,908, gaining 139 points.
Turnover was recorded at a healthy level of LKR 2.4Bn (+127% cf. monthly average turnover of LKR 1.0Bn) supported by high retail participation in LIOC after the price of Auto Diesel was revised down marginally whilst petrol prices were kept unchanged.
Energy and Food, Beverage and Tobacco sectors dominated turnover accounting for a joint contribution of 47%. Despite the bullish run, foreign investors turned net sellers while recording high participation.
Meanwhile in the bond market secondary market activity remained dull ahead of the bill issue. The secondary market activity was largely muted during today’s session ahead of tomorrow’s LKR 87.50Bn Treasury bill auction as investors waited on sidelines awaiting to hear IMF’s direction on staff level and board level agreement timelines.
On short term maturities, 6-month Treasury bill traded at 28.00% whilst 01.06.25 bond maturity traded between 27.39%-27.50%. In the Forex market, USD/LKR spot contracts remained steady at LKR 361.00.
Courtesy: First Capital Research
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