The Colombo Bourse displayed mixed sentiment throughout the day, with the market dipping in the morning before gradually recovering, largely supported by activity in small and mid cap shares.
The ASPI closed at 22,321, marking a marginal gain of 2 points compared to the previous session. Both retail and HNW participation remained average. Top positive contributors to the index included DIAL, CTHR, MERC, GREG, and HARI.
Turnover stood at LKR 5.7Bn, representing a 22% decline from the monthly average of LKR 7.3Bn. The Diversified Financials sector led sector-wise turnover contribution with a 31% share, while the Banks and Capital Goods sectors jointly accounted for 26%.
Investor interest in penny stocks persisted, continuing a trend observed last Friday. Meanwhile, foreign investors turned net buyers, registering a net inflow of LKR 45.6Mn.
BOND MARKET
Secondary market flat; CBSL bond auction raises LKR 162.1Bn
The secondary bond market recorded subdued trading activity ahead of today’s T-bond auction, resulting in the yield curve remaining broadly unchanged from the previous day.
Among the limited number of trades, the 15.10.2029 maturity was quoted at a yield of 9.68%. At the T-bond auction held today, the CBSL raised a total of LKR 162.1Bn, approximately 10.4% below the initial offer of LKR 181.0Bn.
The funds were mobilized through the issuance of bonds maturing in 2030, 2033, and 2037, which recorded weighted average yields of 9.80%, 10.72%, and 11.01% respectively.
On the external front, the LKR appreciated against the USD, closing at LKR 302.68/USD vs. LKR 302.73/USD seen previously. Overnight liquidity in the banking system contracted to LKR 167.2Bn from LKR 169.2Bn recorded the previous day.
Courtesy: First Capital Research
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