The Colombo Bourse witnessed a volatile trading day, where the ASPI steadily moved upward during the early hours of trading and hit 23,000, which then gradually moved down due to profit taking and closed the day at 22,953.
Although the index moved within the greener territory, the index closed with a marginal gain of 25 points. Both retail and HNW investors moderately engaged in trading, while more positivity was observed towards selected blue-chip counters.
Key positive contributors to the index comprised SFCL, SUN, DOCK, CARG and SPEN. Market turnover amounted to LKR 4.4Bn, reflecting a 41% decline compared to the monthly average of LKR 7.5Bn.
The Capital Goods sector led total turnover, contributing 28%, followed by the Food, beverage & tobacco and Banking sectors, which collectively accounted for 34%. Meanwhile, foreign investors remained net sellers, recording a net outflow of LKR 485.4Mn for the day.
BOND MARKET
Yield curve holds steady amid buying interest
The secondary market yield curve saw moderate trading volumes and activity, with further buying interest observed in 2028 and 2029 maturities.
Overall, trading remained steady amid moderate participation. Amongst the 2028 maturities, the 15.01.2028 maturity traded at 9.00%, while the 15.02.2028 and 15.03.2028 maturities were traded at 9.04% and 9.05%, respectively.
The 2029 maturities also saw notable activity, with the 15.06.2029 and 15.09.2029 bonds trading at 9.50% and 9.54%. Additionally, the 15.10.2029 maturity changed hands at 9.55%, and the 15.12.2032 maturity traded at 10.47%.
The CBSL conducted its weekly T-Bill auction today, raising LKR 66.9Bn, falling short of the offered amount of LKR 77.5Bn. The 3M bill raised LKR 4.7Bn, falling short of its initial offer of LKR 7.5Bn, while the yield remained unchanged at 7.52%.
The 6M bill exceeded its initial offer of LKR 30.0Bn, raising LKR 39.7Bn, with the yield remaining unchanged at 7.90%. Meanwhile, the 12M bill raised LKR 22.5Bn, falling below its initial offer of LKR 40.0Bn, as the yield remained unchanged at 8.04%.
On the external front, the LKR depreciated against the USD, closing at LKR 304.53/USD compared to LKR 304.49/USD seen previously. Overnight liquidity in the banking system expanded to LKR 133.2Bn from LKR 105.2Bn recorded on the previous day.
Courtesy: First Capital Research
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