The Colombo Stock Market sustained its bullish momentum throughout the day ahead of the U.S. tariff announcement concerning Sri Lanka, rebounding from yesterday’s losses amidst strong participation from both retail and HNW investors.
Accordingly, the ASPI closed in green at 18,161, marking a gain of 129 points. Banking and Construction sector stocks led the rally, with selective interest also seen in Real Estate and Automobiles sector counters.
Key positive contributors to the index included JKH, HNB, CFIN, RIL, and MELS. Turnover stood at LKR 6.0Bn, reflecting a 17% increase compared to the monthly average of LKR 5.1Bn, supported by several off-board transactions.
The Diversified Financials sector dominated turnover, contributing 21% of the total, followed by the Capital Goods and Materials sectors, which collectively accounted for around 25%. Foreign investors remained net sellers with a net outflow of LKR 84.4Mn.
The secondary market witnesses yet another quiet day
Today carried forward the subdued tone of yesterday, with the secondary market remaining lackluster. While there was a slight tilt toward selling sentiment, overall activity and volumes remained largely stagnant. Amongst the few trades that took place today, 01.09.2028 and 15.10.2028 both traded at 8.95%.
Further ahead on the yield curve, 15.10.2029 traded at 9.45% while 15.12.2029 was seen changing hands at 9.50%. In the forex market, the LKR depreciated against the greenback, closing at LKR 300.9/USD, compared to the previously seen rate of LKR 300.6/USD.
Meanwhile, overnight liquidity in the banking system contracted to LKR 93.9Bn from the previously seen level of LKR 105.0Bn.
Courtesy: First Capital Research
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