Market closes week in the green

• 08 Nov 2024
• 0

The Broad market rebounded today after yesterday's volatile trading session, with the index showing strong bullish momentum throughout the trading day.

Investor sentiment remained positive towards stocks like DIPD, LMF, and AEL, which continued to attract buying interest. Additionally, there was renewed focus on SINS and Construction sector stocks like ACL and TKYO

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However, trading activity in the Banking sector slowed compared to previous sessions. As a result, the index closed the week at 12,800, gaining 73 points.

Amidst the muted participation from HNW investors, turnover experienced a 3.3% decrease from yesterday and stood at LKR 2.0Bn with 27.0% decrease from monthly average standing at LKR 2.8Bn.

Moreover, the Capital Goods sector led the turnover by 26%, followed by the Materials and Food, Beverage & Tobacco sectors jointly contributing 37% of the overall turnover. Foreign investors turned net sellers with a net outflow of LKR 1.3Mn.

Mid-tenors hold strong as buying interest persists in bond market

The secondary bond market yield curve saw a slight downtick on the 2027 and 2028 bonds as investors continued to display buying interest on mid tenors.

However, volumes remained at moderate levels during the day. On the short end, 15.12.2026 closed trades at 10.50%. On the 2027 bond, 01.05.2027 and 15.12.2027 registered trades at 11.15% and 11.35%, respectively.

Meanwhile, several maturities of the 2028 bond enticed interest during the day. Accordingly, 15.02.2028 registered transactions at 11.58% while 15.03.2028 and 01.05.2028 closed at 11.60%. Moreover, 01.07.2028, 15.10.2028 and 15.12.2028 closed at 11.70%, 11.75% and 11.78%, respectively.

Meanwhile, CBSL expects to raise LKR 147.5Bn at the weekly bill auction scheduled for 13th November 2024; raising LKR 62.5Bn from the 03M bill while LKR 65.0Bn and LKR 20.0Bn is to be raised from the 06M and 1Yr bills, respectively.

On the external side, LKR appreciated  against the USD for the second consecutive day, closing at LKR 292.69/USD. Conversely, LKR appreciated against other currencies including GBP, EUR, JPY and AUD. Meanwhile, Overnight liquidity improved, closing at LKR 173.37Bn compared to the previous day’s closing of LKR 169.51Bn. However, CBSL Holdings continued to remain steady at LKR 2,515.62Bn.

Courtesy: First Capital Research

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