The Colombo Bourse opened with a sharp decline, plunging from the previous close of 22,712 to an intraday low of 21,881 as panic selling swept the market following adverse weather conditions.
Thereafter, the index oscillated within a narrow band of 22,100–22,300 for the remainder of the trading day. The ASPI declined by 691 points to close at 22,022, while the S&P SL20 retreated nearly 2.9%, ending the session at 6,086
.
Daily turnover recorded as LKR 5.2Bn, 0.7% up from the monthly average level. Construction sector counters saw a notable pickup in investor interest, as the recent flood-related damage to infrastructure heightened expectations of future rebuilding activity.
The Capital Goods sector accounted for 29.1% of total turnover, followed by Banking and Materials sectors, which collectively contributed 34.8%. Foreign investors remained net sellers for the 5th consecutive day, recording a net outflow of LKR 106.3Mn.
BOND MARKET
Secondary bond market sees limited volumes as investors adopt wait-and-see stance
The secondary market recorded subdued activity today, with investors predominantly remaining on the sidelines as they appeared to assess the potential implications of the adverse weather conditions affecting the country.
Although some selling pressure emerged in shorter-tenor maturities, overall sentiment suggested a predominantly wait-and-see approach. Among the limited trades executed, the 15.02.2028 and 15.03.2028 maturities both traded at 9.20%, while the 15.03.2031 maturity traded at 10.00%.
On the external front, the LKR depreciated against the USD, closing at LKR 308.07/USD compared to LKR 308.03/USD seen previously. Overnight liquidity in the banking system contracted to LKR 86.3Mn from LKR 105.8Mn recorded on the previous day.
Courtesy: First Capital Research
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