Positive sentiment drives ASPI up

• 31 Dec 2024
• 0

The Colombo bourse experienced another day of positive sentiment and increased gains. Amidst the increased participation from retail investors, ASPI closed the day in green at 15,945, gaining 117 points marking a 0.74% increase from the previous day.

The most significant contributors towards the positive index were NDB, DFCC, COMB, HAYL, and CFIN. Mid-sized Banks saw positive movement in the market today, with notable gains in stocks such as SDB, NDB and PABC.

Meanwhile, turnover stood at LKR 7.8Bn, marking an increase of 26.3%, from the monthly average.  Moreover, Banking sector led the turnover by 47%, followed by the Capital Goods and Diversified Financials sectors jointly contributing 27% of the overall turnover. There was a net foreign inflow of LKR 129.9Mn.

Limited bond market activity experience on the concluding day of the year

The secondary bond market yield curve experienced a dull trading session on the concluding day of the year, witnessing thin trading volumes and limited activity.

As a result, the yield curve remained relatively unchanged following yesterday’s bond auction where the CBSL fully accepted LKR 80.0Bn in bonds. Additionally, the CBSL announced the issuance of LKR 168.0Bn in treasury bills to be raised through an auction held on 1st Jan-25, where LKR 43.0Bn is to be raised for the 91-day T-Bill, LKR 60.0Bn is to be raised for the 182-day T-Bill, and LKR 65.0Bn is to be raised for 364-day T-Bill.

Notable trades were on the belly end of the curve, with the 2028, 2029, and 2032 maturities experiencing some interest. The trades were limited to the 15.10.28 maturity which was seen trading between rates of 10.42% - 10.38%. The 15.09.29 maturity was seen trading at a rate of 10.68%.

Similarly, 01.07.32 traded at a rate of 11.46%. Meanwhile, on the external front, the LKR appreciated against the USD, closing at LKR 292.58/USD compared to LKR 292.75/USD recorded the previous day. Similarly, the LKR appreciated against other major currencies such as the GBP, EUR, AUD, and CNY. CBSL holdings of government securities remained unchanged, closing at LKR 2,515.62Bn today.

Overnight liquidity in the banking system expanded to LKR 168.11Bn from LKR 158.37Bn recorded the previous day.

Courtesy: First Capital Research

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