The week began with mixed sentiment in the Colombo Bourse, while volatility was observed throughout the trading session. The ASPI shed 6 points to close at 21,617, while the S&P SL20 Index advanced 19 points to 6,085.

The market saw slightly higher retail investor interest, however the HNW engagement was low during the day. BREW, RICH, RIL, DOCK and CDB emerged as the top negative contributors to the ASPI index.

Daily turnover stood at LKR 1.9Bn, marking a decrease of 34.5% over the monthly average of LKR 2.9Bn. Food, Beverage & Tobacco sector led the daily turnover with a share of 36%, followed by the Capital Goods, and Banking sectors collectively contributing 30%. Foreign investors remained net sellers, posting a net outflow of LKR 473.5Mn.

BOND MARKET

Muted trading keeps the yield curve anchored

The secondary market started the week on a lethargic footing, with both market participation and trading activity remaining constrained, while the yield curve stayed broadly unchanged.

Noteworthy trades were limited to a handful of transactions, with activity concentrated mainly across the short to mid-end of the curve. At the short end of the curve 15.02.2028 and 15.03.2028 both traded at 10.00% while 01.05.2028 traded modestly higher at 10.10%.

Further along the yield curve 01.08.2030 changed hands at 10.80% while 15.12.2032 traded between 11.30% to 11.36%. Finally, 01.11.2033 and 15.10.2034 were seen trading at 11.50% and 11.75% respectively.

On the external front, the LKR appreciated against the USD, standing at LKR 333.09/USD, compared to LKR 333.60/USD seen earlier. Market liquidity in the banking system expanded to LKR 301.35Bn from LKR 290.69Bn recorded previously.

-First Capital Research-