CSE kicks off 2026 on a positive note with strong turnover and retail participation

• 02 Jan 2026
• 0

The Colombo Stock Exchange commenced trading for 2026 on a positive note, with strong buying interest driving a sharp uptick at the opening bell. A sharp surge at the opening bell signaled eager buying, after which the index settled into a calm, confident climb.

The All-Share Price Index rose by 240 points to close at 22,864, while the S&P SL20 index added 29 points to finish the day at 6,186, both ending the session firmly in positive territory. Top positive contributors to the ASPI were ACL, COMB, AEL, DFCC and DIPD.

Daily turnover recorded at LKR 5.2Bn, which is about 44% above the monthly average level of LKR 3.6Bn. Retail investors took a major part in today’s market activity while HNW participation was at an average level.

Notable interest was observed in Capital Goods sector, particularly counters focused on manufacturing and marketing of cables & conductors, ranking among the highest turnovers for the day.

Additionally, property sector stocks edged higher over the course of the day. The Capital Goods sector contributed 46% of total turnover, while Materials sector and the Food, Beverage and Tobacco sector together accounted for 18%. Foreign investors remained net sellers, posting a net outflow of LKR 87.8Mn.

BOND MARKET

Steady yields persist amid moderate trading volumes

The secondary bond market saw buying interest concentrated in the short to mid-tenor space, while the 2033 and 2035 maturities experienced mixed sentiment. Overall, yields were largely stable, with moderate trading volumes observed during the session.

At the short end of the curve, the 15.03.2028 maturity traded at 9.05%, while the 01.07.2028, 01.09.2028, and 15.12.2028 maturities traded in the 9.15%-9.20% range.

In the 2029 segment, both the 15.10.2029 and 15.12.2029 maturities traded between 9.70% and 9.75%.

Further along the curve, the 01.07.2030 maturity was seen trading in the 9.80%-9.83% band. Within the 2033 segment, the 01.06.2033 and 01.11.2033 maturities traded at 10.50%, while the 15.06.2035 maturity traded at 10.75%. On the external front, the LKR appreciated against the USD, closing at LKR 309.54/USD compared to LKR 309.98/USD recorded the previous day. Overnight liquidity in the banking system expanded to LKR 134.5Bn from LKR 128.1Bn recorded previously.

Courtesy: First Capital Research

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