The broader market continued to witness yesterday’s selling pressure as the market witnessed a subdued sentiment as index heavyweights dragged the index into the red for the 3rd consecutive day.
Accordingly, ASPI halted day at 11,768 by losing 62 points whereas MELS, SLT, COMB, NDB and HAYL emerged as the top negative contributors.
Crossings took place amongst JKH and HAYL, contributed considerably to overall turnover while turnover saw a slight decrease from yesterday and stood at LKR 1.1Bn, marking a 22.6% decrease from the monthly average standing at LKR 1.5Bn, where the Capital Goods sector led the turnover with 67%, followed by the Banking, and Diversified Financials sectors jointly contributing 15% to the overall turnover.
Notably, due to the selling pressure witnessed on SLT, led the Telecommunication sector to contribute 4% to the overall turnover. However, foreign investors remained net buyers for the 4th consecutive day with a net inflow of LKR 454.5Mn.
Market moves into 4th consecutive session of buying interest
The secondary market moved into the fourth consecutive session of increased buying interest. The belly end of the yield curve centered buying interest amongst maturities between 2026 to 2028, while the long end of the curve remained steady.
Among the traded maturities, short term tenors 01.02.26 traded at a rate of 10.15%. Meanwhile, mid-term tenors experienced heightened buying interest notably amongst the 2028 maturities with 01.08.26, 15.02.28, 15.03.28, 01.05.28, and 01.07.28 closing trades at 10.35%, 11.68%, 11.75%, 11.75%, and 11.80% respectively.
Similarly, mid-term tenors 01.05.27, 15.12.27, 15.09.29, 15.05.30, and 01.12.31 traded at rates of 11.35%, 11.60%, 12.00%, 12.15%, and 12.40%, respectively. Furthermore, in May 2024, Sri Lanka’s private credit surged by LKR 60.7Bn, rebounding from April’s contraction, to reach LKR 7.4Tn.
On the external front, LKR depreciated against the USD, closing at 303.8/USD, compared to 303.3/USD recorded the previous day. Meanwhile, CBSL Holdings of government securities remained at LKR 2,595.6Bn today. Overnight liquidity in the banking system contracted to LKR 94.6Bn from LKR 117.2Bn recorded the previous day.
Courtesy: First Capital Research
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