The Colombo Bourse exhibited high levels of intraday volatility with the ASPI ultimately closing at 20,992, up by a marginal 16 points. The ASPI showcased positive momentum in the early hours and peaked by the afternoon, after which it witnessed a drastic drop amidst high volatility, which resulted in the index closing broadly on a standstill.
Positive and negative contributors for the day remained balanced, with the top positive drivers being RIL, CTC, PLR, RICH and JKH. Retail and HNW investors were moderately engaged, with selling focused primarily on Banking and Blue-Chip stocks.
Turnover for the day amounted to LKR 5.7Bn, which is 18% lower than the monthly average that stands at LKR 6.9Bn. The Capital Goods sector led turnover contributions with a 19% share, while the Consumer Services and Real Estate sectors stood next in line, with a collective contribution of 30%. Foreign investors remained net buyers, recording a net inflow of LKR 9.1Mn.
BOND MARKET
Yield curve remains static amidst mixed market activity
The secondary market reflected mixed sentiment, characterized by ultra-thin trading volumes and subdued activity. Market attention was primarily directed towards 2029 maturities, with trades in the 15.06.2029, 15.09.2029, 15.10.2029, and 15.12.2029 bonds occurring within a yield range of 9.40% to 9.53%.
Additionally, the Sri Lanka Purchasing Managers' Index (PMI) for Construction, as measured by the total activity index, rose to 60.0 in July 2025, reflecting continued growth in construction activity.
Numerous firms reported a consistent rise in available construction projects, indicating sustained positive momentum in the industry. In the forex market, the LKR, remained broadly unchanged at LKR 302.1/USD.
Meanwhile, overnight liquidity in the banking system expanded to LKR 144.4Bn from the previously seen level of LKR 138.8B
Courtesy: First Capital Research
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