The Colombo Bourse closed the week flat, with the ASPI closing the day at 22,410, while the S&P SL20 also closed flat at 6,247.

Investor sentiment remained mixed with HNW participation at average levels, while retail participation remained high. The main positive contributors to the ASPI were DFCC, MELS, PKME, CFIN, and RICH.

Daily turnover stood at LKR 1.9Bn, marking a decrease of 27.1% over the monthly average of LKR 2.6Bn. Capital Goods sector led the daily turnover with a share of 32%, followed by the Diversified Financials, and Materials sectors collectively contributing 27%. Foreign investors turned into net buyers, posting a net inflow of LKR 9.3Mn.

BOND MARKET

The secondary market records limited activity with moderate trading volumes

The secondary market experienced limited activity with moderate trading volumes. Ahead of the T-Bond auction, selling interest was observed in the short to mid-end of the yield curve, with the 15.12.2029 maturity trading at 11.00%, while the 01.08.2030 and 15.10.2030 maturities traded in the 11.20% to 11.30% range.

Following the auction, buying interest shifted towards the newly auctioned T-Bond maturities, with the 15.10.2030 maturity trading in the 11.40% to11.45% range, while the 15.08.2036 maturity traded at 12.00%.

Trading activity was primarily driven by primary dealers and banking sector participants. At the T-Bond auction held today, the PDMO successfully raised the full amount offered. Of the total accepted, LKR 45.0Bn was raised through the 2030 maturity and LKR 15.0Bn through the 2035 maturity, at weighted average yields of 11.44% and 11.88%, respectively.

On the external front, the LKR depreciated against the USD, standing at LKR 337.04/USD, compared to LKR 336.57/USD seen earlier. Liquidity in the banking system slightly contracted to LKR 61.62Bn from LKR 65.36Bn recorded previously. Popular maturities traded during the day:

15.12.2029: +5bps 

01.08.2030: +8bps 

15.10.2030: +14bps        

15.08.2036: (Unchanged)

-First Capital Research-