The Colombo Bourse remained subdued during the first half of the session but saw selling pressure emerge in the latter half, ultimately closing in negative territory with a loss of 80 points to end at 22,292.
Retail participation remained strong, while HNW activity continued to be subdued. The decline was mainly driven by Banks and Conglomerates, with SAMP, HNB, MELS, JKH, and CTHR emerging as the key negative contributors to the index.
Turnover amounted to LKR 5.6Bn, reflecting a 20% drop compared to the monthly average of LKR 7.0Bn. The Diversified Financials sector led turnover, contributing 30%, while the Capital Goods and Banking sectors collectively accounted for 29%. Foreign investors remained net sellers, recording a net outflow of LKR 331.3Mn.
BOND MARKET
Quiet day at the secondary market amid thin volumes
The secondary bond market witnessed a dreary session during the day amid ultra-thin volumes. Noteworthy transactions took place on the short to mid end of the curve; however, the yield curve remained unchanged.
At the short end of the curve, the bond maturing on 01.08.2026 traded at a rate of 8.35%, followed by the 15.09.2029 maturity, which changed hands at 9.69%. Towards the mid-end, the 01.12.2031 tenor was transacted at a yield of 10.22%.
The CBSL conducted its weekly T-Bill auction today, where a total of LKR 27.2Bn was accepted, despite total bids reaching LKR 102.4Bn. The amount raised also fell short of the initially offered LKR 77.5Bn.
A sum of LKR 4.4Bn was accepted for the 3-month maturity, LKR 18.7Bn for the 6-month maturity, and LKR 4.0Bn for the 12-month maturity. The weighted average yields across all three tenors remained unchanged.
On the external front, the LKR depreciated against the USD, closing at LKR 302.73/USD compared to LKR 302.60/USD seen previously. Overnight liquidity in the banking system contracted to LKR 156.38Bn from LKR 171.02Bn recorded the previous day.
Courtesy: First Capital Research
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