The Colombo Bourse ended in negative territory today, recording its lowest turnover of the year. The ASPI declined by 42 points to close at 21,405, while the S&P SL20 fell by 5 points to close at 6,000.

Investor sentiment remained subdued as selling pressure persisted, with investors largely adopting a wait-and-see approach ahead of the upcoming quarterly earnings season.

Ongoing geopolitical tensions also continued to weigh on market confidence. Both HNW and retail investor participation remained low during the session, resulting in thin trading activity and the exceptionally weak turnover.

The main negative contributors to the ASPI were LOLC, JKH, CARG, PKME, and NDB. Daily turnover stood at LKR 0.7Bn, marking a decrease of 59.6% over the monthly average of LKR 1.8Bn.

Banking sector led the daily turnover with a share of 26%, followed by the Capital Goods, and Food Beverage & Tobacco sectors collectively contributing 32%. Foreign investors remained net sellers, posting a net outflow of LKR 108.4Mn.

BOND MARKET

Secondary market ends week on a muted note

The secondary market recorded a subdued trading session, characterised by limited activity and low trading volumes. Despite muted market participation, the secondary market yield curve edged slightly higher from the belly to the long end of the curve.

Among the actively traded maturities, the 15.10.2030 maturity traded at a yield of 11.60%, while the 01.11.2033 and 01.07.2037 maturities were traded at the rates of 12.10% and 12.60%, respectively.

On the external front, the LKR appreciated marginally against the USD, standing at LKR 336.30/USD, compared to LKR 336.40/USD seen earlier.

Furthermore, LKR also appreciated against the other major currencies such as GBP, EUR, JPY, CNY and AUD. Overnight liquidity in the banking system slightly expanded to LKR 167.97Bn from LKR 163.41Bn recorded previously.

Courtesy: First Capital Research