The bourse started the week with a day of positive sentiment and increased market activity. Amidst the increased participation from retail investors, ASPI closed the day in green at 15,827, gaining 292 points marking a 1.88% increase from the previous day.
During today's trading session, most of the investor attention was focused on Banking sector stocks. The most significant contributors towards the positive index were HNB, NDB, SAMP, DFCC, and CTC. Amidst multiple off-board transactions, turnover stood at LKR 10.2Bn, marking an increase of 76.7%, from the monthly average.
Moreover, the Banking sector led the turnover by 44%, followed by the Capital Goods and Food, Beverage and Tobacco sectors jointly contributing 27% of the overall turnover. There was a net foreign outflow of LKR 55.3Mn.
Lethargic activity in bonds continues towards the year-end
The secondary bond market experienced a lethargic trading session towards the year end as the secondary market yield curve remained broadly unchanged. The trades were limited to the 15.10.28 maturity, which traded at 10.45% prior to the T-Bond auction results.
Meanwhile, CBSL conducted a T-Bond auction worth LKR 80.0Bn, where the bids exceeded the total offered amount by 2.8 times, and the full offered amount was accepted by CBSL. Furthermore, the weighted average yield rates stood at 10.42% and 11.47% for 15.10.28 and 01.06.33 maturities respectively.
On the external front, the LKR appreciated against the USD, closing at LKR 292.75/USD compared to LKR 294.33/USD recorded the previous day. Additionally, the LKR also appreciated against other major currencies such as the GBP, EUR, AUD, CNY, and JPY. CBSL holdings of government securities remained unchanged, closing at LKR 2,515.62Bn today. Overnight liquidity in the banking system declined to LKR 158.37Bn from LKR 173.27Bn recorded the previous day.
Courtesy: First Capital Research
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