The Colombo Bourse extended its upward trajectory today, with the ASPI gaining 164 points to close at 23,503. Investor sentiment remained buoyant, particularly towards counters that received favorable outcomes from the National Budget reading.
Retail participation remained elevated, while HNW activity continued at a moderate pace. The Banking sector was the main driver of market gains, with HNB, SAMP, COMB, NDB, and DIAL emerging as key positive contributors to the index.
Market turnover reached LKR 7.5Bn, reflecting a 5% increase compared to the monthly average of LKR 7.2Bn. The Capital Goods sector dominated activity, accounting for 25% of total turnover, followed by the Banking and Food, Beverage & Tobacco sectors, which collectively contributed 34%. Meanwhile, foreign investors remained net sellers, recording a net outflow of LKR 434.1Mn for the day.
BOND MARKET
Buying momentum drives yields lower across the board
As the secondary market opened for the first time since the unveiling of the budget for 2026, investors demonstrated acute buying interest, pushing the yield curve down across the board. Today was also marked by relatively high trading volumes as a result of which noteworthy activity was visible across most maturities.
At the short end of the curve, 2028 maturities traded between 8.90% to 9.00% while 2029 maturities were seen trading between 9.35% to 9.40%. Moving ahead, 01.07.2030 maturity traded at 9.60% while 15.03.2031 maturity changed hands at a rate of 9.85%.
Moreover, 2032 maturities were seen trading between 10.35% to 10.40% and finally, 01.11.2033 traded higher at 10.50%. On the external front, the LKR depreciated marginally against the USD, closing at LKR 304.96/USD compared to LKR 304.95/USD seen previously. Overnight liquidity in the banking system expanded to LKR 142.5Bn from LKR 118.3Bn recorded on the previous day.
Courtesy: First Capital Research
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