In the Colombo bourse the Broad market rebounded from a loss of over 100 points yesterday, with the ASPI experiencing a volatile trading session amidst mixed investor sentiment.
Banks led the charge in the post midday, helping the ASPI to recover. As a result, the ASPI closed the day in green at 15,926, gaining 115 points. HNB, LOLC, HHL, BIL and RCL emerged as the positive contributors to the index.
Amidst mixed participation from retail and HNWs, turnover stood at a lower LKR 3.7Bn, marking a decrease of 48.7%, from the monthly average standing at LKR 7.3Bn.
Moreover, the Banking sector led the turnover by 35%, followed by the Food, Beverage & Tobacco, and Capital Goods sectors jointly contributing 35% of the overall turnover. Meanwhile, the net foreign outflow for the day stood at LKR 100.5Mn.
Mixed sentiment emerges post auction
The secondary bond market yield curve witnessed a day of mixed sentiment amidst the presence of both buying and selling activity. The market saw moderate volumes following yesterday’s T-Bond auction where a total of LKR 179.3Bn was accepted.
Amongst the traded maturities, notable trades were on the 2026, 2028, 2030, and 2031 maturities. On the short end of the curve, 01.06.26, 01.08.26, 15.12.26 were seen trading between rates of 9.15% - 9.45%. On the belly end of the curve, 01.05.28, 01.07.28, 01.09.28, and 15.10.28 traded between rates of 10.25% - 10.43%. The long end of the curve, 15.10.30 and 15.03.31 traded between rates of 11.29% - 11.25%, and 11.36%, respectively.
Meanwhile, on the external front, the LKR appreciated against the USD closing at LKR 295.59/USD compared to LKR 296.09/USD recorded the previous day. CBSL holdings of government securities remained unchanged, closing at LKR 2,515.62Bn today. Overnight liquidity in the banking system contracted to LKR 130.26Bn from LKR 142.11Bn recorded the previous day.
Courtesy: First Capital Research
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