ASPI closes the week in green

• 12 Jul 2024
• 0

Colombo bourse experienced gentle gains amidst a slight upturn in market activity and increased positive investor sentiment. The ASPI closed at 11,844, marking a 0.35% increase from the previous day, to which the most significant contributors were COMB, BUKI, HAYL, CTC, and LOLC, where COMB and BUKI led the way. The inflow of positive sentiment can be attributed to the presence of bargain buying as a result of a decline in prices.

Heightened activity was displayed primarily amongst blue-chips JKH and HAYL, and banks. Turnover saw a slight increase, further reflecting the gradual increase in momentum, standing at LKR 653.4Mn, where the Capital Goods sector led turnover at 31.9%, followed by the Food, Beverage and Tobacco, and the Banking sectors jointly contributing 42.3% of overall turnover. There was a net foreign outflow of LKR 101.2Mn, signaling interest in external investments. The market overall, saw a day of positive sentiment amidst a gradual increase in momentum.

Mixed sentiment inverts the secondary market

The secondary market witnessed a mixed sentiment during the day backed by limited activity and thin volumes as investors eagerly yearned for clear direction and market sentiment.

Towards the short end of the curve, slight selling interest was witnessed on 15.12.26 which traded at 10.90%. Furthermore, 15.12.27 which was traded at the T-Bond auction yesterday witnessed buying interest and marked trades during the day registering at 11.80%.

Furthermore, selling interest gathered around liquid maturities namely, 15.01.28, 15.02.28 and 01.05.28 which traded between the range of 11.85% - 12.00%. Towards the mid end of the curve, 01.12.31 tenor traded at 12.65%. On the external side the LKR slightly appreciated for the 4th consecutive day recording at LKR 303.3. CBSL announced an LKR 110.0Bn T-bill auction scheduled for the 17th Jul-24 where, LKR 30.0Bn is expected to be raised from 91 day maturity, another LKR 30.0Bn from 182 day maturity and LKR 50.0Bn from 364 day maturity. Overnight liquidity improved to LKR 130.4Bn today from LKR 122.3Bn recorded during the previous day. Moreover, CBSL holdings remained stagnant at LKR 2,595.6Bn for the 11th consecutive day.

Courtesy: First Capital Research

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