Building on the previous week's sentiment, the Colombo Bourse refreshed its all-time high as investor optimism remained strong, driven by relatively low reciprocal tariff rates compared to regional peers.
The market saw an upward momentum, with the index surging to 18,838, ending the day with a gain of 297 points. Elevated participation from both HNW individuals and retail investors continued, in line with the trend observed in the past couple days.
Interest towards blue-chip counters and Banking sector counters remained strong with JKH, SAMP, HNB, MELS and COMB emerged as the top positive contributors to the index.
Robust investor activity resulted in a high turnover of LKR 9.5Bn which reflected a 74% increase over the monthly average, which is around LKR 5.5Bn.
The Banking sector led the turnover, accounting for 31% of the day’s total, followed by the Capital Goods and Diversified Financials sectors, which together contributed approximately 32%. Foreign investors remained net sellers with a net outflow of LKR 328.0Mn.
BOND MARKET
Lack of market activity results in stable yield curve
The secondary market opened the week with limited trading activity, leading to a largely static yield curve. Among the few notable trades, the 01.05.2027 maturity traded at 8.35%, while the 15.03.2028 maturity traded at 8.76%.
Similarly, the 01.05.2028 exchanged hands at the rate of 8.88%. Despite these transactions, the overall market environment remained quiet, preventing any significant movement or adjustment in the yield curve.
In the forex market, the LKR appreciated marginally against the greenback, closing at LKR 300.70/USD, compared to the previously seen rate of 300.71/USD.
Meanwhile, overnight liquidity in the banking system contracted slightly to LKR 109.03Bn from the previously seen level of LKR 109.5Bn.
Courtesy: First Capital Research
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