The Colombo Bourse closed in positive territory today, gaining 51 points to end at 22,373. Retail participation increased compared to the previous session, while HNW activity remained moderate.
Despite the overall gain, the number of negative contributors exceeded the positive ones. Key positive contributors to the index included WIND, DIAL, HNB, PLC, and NDB
.
Turnover recorded LKR 5.7Bn, reflecting an 18% decline from the monthly average of LKR 7.0Bn. The Diversified Financials sector led sector-wise turnover with a 26% contribution, while the Capital Goods and Utilities sectors collectively accounted for 27%.
Meanwhile, market capitalization surpassed LKR 8.0Tn for the first time, marking a significant milestone. Foreign investors turned net sellers, posting a net outflow of LKR 59.0Mn.
BOND MARKET
Selling pressure mounts on short end with minimal curve movement
The secondary bond market saw mixed sentiment with moderate trading volumes and activity. Selling pressure was noted on the short end of the yield curve, where maturities such as 01.08.2026 and 15.12.2026 were traded within a yield range of 8.30% to 8.35%.
Towards the belly end of the curve, maturities including 01.05.2028, 01.07.2028, 15.10.2028, and 15.12.2028 changed hands within a range of 9.20% to 9.30%. Further along the curve, bonds maturing on 15.06.2029, 15.10.2029, and 15.12.2029 were traded between the rates of 9.65% to 9.70%.
Further along the curve, the 01.07.2030 maturity traded at 9.80%, while the 01.11.2033 maturity saw trades at 10.72%. On the external front, the LKR appreciated against the USD, closing at LKR 302.60/USD vs. LKR 302.68/USD seen previously. Overnight liquidity in the banking system expanded to LKR 171.0Bn from LKR 167.2Bn recorded the previous day.
Courtesy: First Capital Research
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