The Colombo Bourse concluded the session on a positive note, recording a marginal increase as investors adopted a cautious wait-and-see approach amid the volatile macroeconomic environment and the anticipations surrounding the upcoming CBSL policy meeting decisions.

The ASPI edged up by 96 points to close at 21,930, while the S&P SL20 gained 22 points to settle at 6,061. The top positive contributors to the ASPI were JKH, DOCK, MELS, RICH and SAMP.

Market participation remained subdued, with low activity levels observed among both HNW and retail investors. Daily turnover stood at LKR 2.2Bn, marking a decrease of 38.6% over the monthly average of LKR 3.5Bn.

Capital Goods sector led the daily turnover with a share of 25%, followed by the Food Beverage & Tobacco, and Banking sectors collectively contributing 24%. Foreign investors turned net sellers, posting a net outflow of LKR 11.6Mn.

BOND MARKET

Yield curve softens amid forex market developments

Amid the rupee appreciation in the forex market, the secondary market yield curve shifted downward from the short to mid tenor amidst renewed buying interest, while market activity and trading volumes remained moderate.

Among the trades executed during the day, within the 2028 segment, the 15.02.2028 and 15.03.2028 maturities traded within the range of 10.00% to 10.10%, while the 01.07.2028 maturity traded at 10.25%. Meanwhile, the 15.12.2029 maturity changed hands at 10.40%.

Further along the curve, the 01.07.2030 and 01.08.2030 maturities traded at 10.40%. Further along the curve, 01.10.2032, 01.06.2033, 15.06.2034, and 15.08.2036 maturities traded at 11.30%, 11.38%, 11.50%, and 11.54%, respectively. Overnight liquidity in the banking system contracted to LKR 141.27Bn from LKR 158.93Bn recorded previously.

-First Capital Research-