The Colombo Bourse experienced notable volatility during early trading hours before retreating below the 23,250 mark in the latter part of the session amid profit-taking pressure.
The ASPI eventually closed at 23,224, reflecting a sharp decline of 236 points from the previous session. Retail participation remained moderate, while HNW activity continued to be relatively subdued.
CINS, SFCL, BUKI, COMB and SAMP emerged as the key negative contributors to the index. Daily market turnover reached LKR 4.5Bn, marking a 35% drop against the monthly average of LKR 6.8Bn.
The Banking sector dominated activity, accounting for 19% of total turnover, followed by the Capital Goods and Food, Beverage & Tobacco sectors, which together contributed 38%. Foreign investors remained net sellers, recording an outflow of LKR 151.8Mn for the day.
BOND MARKET
Buying interest emerges at the week’s open
The secondary bond market reflected a broadly mixed sentiment, though buying interest ultimately outweighed selling pressure.
Trading activity remained relatively subdued, resulting in moderate volumes. At the short end, a cluster of 2028 maturities, including 15.02.2028, 15.03.2028, 01.07.2028, 01.09.2028 and 15.10.2028, traded within a yield band of 9.00% to 9.07%.
Moving along the curve, the 15.06.2029 and 15.09.2029 bonds traded between 9.40% to 9.45%. Lastly, at the belly end of the curve, the 01.07.2030 maturity changed hands at 9.60%.
On the external front, the LKR depreciated against the USD, closing at LKR 306.37/USD compared to LKR 305.22/USD seen previously. Overnight liquidity in the banking system contracted further to LKR 87.64Bn from LKR 136.12Bn recorded on the previous day.
Courtesy: First Capital Research
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