The Colombo Bourse closed in negative territory today, with the ASPI declining by 86 points to 21,461 and the S&P SL20 falling by 15 points to 5,985.

Although the market traded in positive territory during the morning session, selling pressure emerged later in the day, reversing early gains and weighing on investor sentiment.

Retail participation remained at average levels during the session. The main negative contributors to the ASPI were CTHR, MELS, GREG, AEL, and CFIN.

Daily turnover stood at LKR 1.7Bn, marking a decrease of 47.0% over the monthly average of LKR 3.1Bn. Capital Goods sector led the daily turnover with a share of 28%, followed by the Materials, and Food Beverage & Tobacco sectors collectively contributing 30%.

Foreign investors remained net buyers, posting a net inflow of LKR 55.9Mn

BOND MARKET

Investors stay on sidelines ahead of T-Bond auction

Investor caution persisted in the secondary market, as participants awaited direction from the tomorrow’s T-Bond auction. Limited trading activity was seen, while the weighted average yields edged higher at today’s T-Bill auction.

Over the 2029 segment, 15.09.2029, 15.10.2029 and 15.12.2029 traded between 12.00%-12.15%. Additionally, 01.08.2030 maturity changed hands at 12.25%.

At the T-Bill auction, the PDMO raised only a portion, amounting to LKR 71.7Bn, compared to the initial offer of LKR 140.0Bn. The 3M bill raised LKR 56.6Bn, falling short of its offer of LKR 65.0Bn, while 6M and 12M maturities raised LKR 8.9Bn and LKR 6.2Bn, compared to the offered amounts of LKR 55.0Bn and LKR 20.0Bn respectively.

Weighted average yields edged up across the board, with the 3M yield edging up 25bps to settle at 10.09%, the 6M yield edging up 26bps to 10.27%, and the 12M bill edging up 14bps to 10.16%.

On the external front, the LKR depreciated against the USD, standing at LKR 337.63/USD, compared to LKR 336.82/USD seen earlier. Liquidity in the banking system contracted to LKR 57.38Bn from LKR 69.18Bn recorded previously.

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First Capital Research-