The Colombo Bourse maintained its positive momentum, advancing for a third consecutive session, supported by resilient 2Q2026 corporate earnings and stable global oil prices.

The ASPI gained 84 points to close at 21,623, while the S&P SL20 Index advanced 34 points to 6,066. Participation from HNW and retail investors remained moderate during the trading session.

Daily turnover stood at LKR 2.2Bn, marking a decrease of 20.9% over the monthly average of LKR 2.8Bn. Retailing sector led the daily turnover with a share of 32%, followed by the Food Beverage & Tobacco, and Banking sectors collectively contributing 32%. Foreign investors remained net sellers, posting a net outflow of LKR 696.0Mn.

BOND MARKET

Long tenors attract modest buying interest

Market activity remained moderate today, with investor interest evident across the curve. Modest buying at the long end prompted a downward adjustment of around 10–15bps, while the remainder of the curve remained broadly unchanged.

At the short end of the curve 01.05.2028 and 15.10.2028 traded at 10.10% and 10.20% respectively while 15.10.2029 and 15.12.2029 changed hands between 10.55% to 10.60%. In the 2030 segment, 01.03.2030, 01.08.2030 and 15.10.2030 traded within the 10.70%-10.80% range.

Further along the yield curve 01.02.2031 traded between 10.85% to 10.92% while 01.07.2032, 01.10.2032 and 15.12.2032 were seen changing hands within the 11.30% to 11.45% range. Towards the belly end of the curve 15.01.2033 and 01.11.2033 traded at 11.40% and 11.44%-11.58% respectively while 15.10.2034 changed hands between 11.72% to 11.67%.

Finally, 15.06.2036 traded within 12.15% to 12.10% and 01.07.2037 changed hands from 12.20% to 12.15%.  On the external front, the LKR appreciated against the USD, standing at LKR 333.60/USD, compared to LKR 334.33/USD seen earlier. Market liquidity in the banking system contracted to LKR 310.69Bn from LKR 330.91Bn recorded previously.

-First Capital Research-