IMF’s staff level agreement reverses investor sentiment

• 09 Oct 2025
• 0

Reversing yesterday’s profit taking position, Colombo Bourse exhibited buying sentiment during the day. ASPI ended in green territory and ended the day at 22,175, gaining 77 points from yesterday, largely contributed by the upward movement in blue-chip companies.

COMB, DIMO, BUKI, CARS and WIND were the top positive contributors to the index. Turnover stood at LKR 13.3Bn, reflecting an increase of 90% compared to the monthly average that stands at LKR 7.0Bn.

Banking sector took the lead in terms of sector wise contribution to the turnover, with a share of 48%, while Diversified Financials sector and Capital Goods sector jointly contributed 23%. A noteworthy contribution from HNW participants was observed, mainly driven by profit-taking in COMB, with an off-board transaction accounting for 40% of today’s turnover.

The positive investor participation could have been backed by IMF’s disclosure on reaching a staff-level agreement on the fifth review under Sri Lanka’s extended fund facility agreement. Moreover, investor participation was observed on penny stocks. Foreign investors turned net buyers, recording a net inflow of LKR 252.5Mn.

BOND MARKET

Moderate trading activity keeps yield curve steady

The secondary market exhibited mixed sentiment, characterized by moderate trading activity, which contributed to the overall yield curve remaining unchanged.

Trades executed during the day include the 15.03.2028 maturity, which traded within a narrow yield range of 9.14% to 9.15%. In the 2029 segment, the 15.10.2029 and 15.12.2029 maturities traded within a range of 9.68% to 9.75%.

The 01.07.2030 bond changed hands at a yield of 9.78%, while the 15.03.2031 issue traded in a wider band of 10.03% to 10.10%. Further along the curve, the 15.12.2032 maturity saw trades at a yield of 10.50%.

On the external front, the LKR depreciated against the USD, closing at LKR 302.62/USD vs. LKR 302.49/USD seen previously. Overnight liquidity in the banking system contracted to LKR 156.8Bn from LKR 174.3Bn recorded the previous day.

Courtesy: First Capital Research

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