The Colombo bourse started the week on a positive note, mirroring last week's positive sentiment as index experienced a sustained bullish momentum throughout the day, with nearly all Banking sector counters and conglomerates showing gains.
Accordingly, ASPI halted the day at 11,892 gaining 48 points. Notably, significant buying interest in COMB was observed ahead of the XR date, which falls tomorrow. Despite limited participation from retail investors, HNWIs were actively involved compared to previous sessions, with 47.7% of the overall turnover generated from off-board transactions.
Meanwhile, turnover stood at LKR 1.6Bn, with a >100% increase from previous close and 4.3% up from the monthly average standing at LKR 1.5Bn.
The Capital Goods sector contributed 61% to the turnover whilst the Insurance and Banking sectors jointly contributed 20% to the overall turnover.
Furthermore, a significant number of shares traded in CINS resulted in the insurance sector being the second highest contributor to the overall turnover. However, foreign investors turned net buyers, with a net inflow of LKR 409.4Mn.
Yield curve dips amidst propelled buying interest
Commencing the week, the secondary market yield curve witnessed a downward trend during the day as most maturities across the curve experienced declines in rates, reversing the trend from the dull market witnessed during the previous sessions.
Furthermore, maturities spanning from short to mid tenors namely 2026-2030 witnessed revitalized buying interest amidst active investor participation during the day.
Trades were recorded in moderate volumes on liquid maturities 2026-2030. Accordingly, 01.02.26 tenor traded at 10.40%, 01.06.26 traded at 10.70%, 15.12.26 traded at 10.85%.
Towards the mid end of the curve, 15.12.27 traded at 11.70%, 15.02.28 traded at 11.80%, 15.03.28 traded at 11.85%, 01.05.28 traded at 10.90% and 01.07.28 traded at 11.95%.
Moreover, 15.09.29 traded at 12.10% whilst 15.05.30 traded at 12.15%. On the external side LKR slightly appreciated during the day registering at LKR 302.2.
Average weighted prime lending rate (AWPR) registered at 8.85% recording a decline of 19bps for the week ending 12th July 2024. Foreign holdings declined to LKR 53.1Bn for the week ending 11th July 2024.
Overnight liquidity declined to LKR 122.4Bn during the day from LKR 130.4Bn recorded during the previous day.
Courtesy: First Capital Research
Subscribe to our newsletter to get notification about new updates, information, etc..
