Since the beginning of the trading session, ASPI experienced a renewed positive sentiment and subsequently closed the week at 10,683, gaining 116 points as Banking sector counters and high-cap companies gained the momentum.
Majority of the sectors witnessed price gains across the board and improved participation of the HNW investors was also observed.
Meanwhile, turnover saw a 6.4% increase from the previous day and recorded at LKR 1.2Bn, marking a 38.7% increase from the monthly average standing at LKR 880.1Bn.
The Capital Goods sector solely contributed 36% to the overall turnover whilst the Banking and Food, Beverage & Tobacco sectors jointly contributed 43% to the total turnover. Foreign investors remained net buyers, recording an inflow of LKR 80.4Mn.
Buying interest emerges post auction
The secondary market yield curve experienced increased buying interest reversing the selling pressure observed in the previous sessions.
The market saw moderate levels of activity following yesterday’s T-Bond auction held on the 12th of September 2024, which prompted increases in buying interest as a total of LKR 246.0Bn was accepted from LKR 290.0Bn offered.
Buying interest centered around bond auction yields and the 3M bills. The belly end of the curve saw heightened interest with 15.06.29 trading between rates of 13.85% - 13.65% Similarly, 15.02.28 traded between rates of 13.65% - 13.58%.
Notably, the short end of the curve displayed mixed activities as 01.05.27 traded at a rate of 13.00%. Additional activity was noted in the T-Bills market, with the 3M bill trading in large volumes within a rate range of 10.30% - 10.20%
On the external front, the LKR depreciated against the USD, closing at 301.80/USD compared to 300.77/USD recorded the previous day. Meanwhile, CBSL holdings of government securities declined, closing at LKR 2,523.92Bn today.
Overnight liquidity in the banking system contracted to LKR 38.58Bn from LKR 85.51Bn recorded the previous day.
Courtesy: First Capital Research
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