The Colombo Stock Exchange experienced a volatile session amidst average activity levels, with the market closing in negative territory following a notable emergence of selling pressure during the latter part of the session.

The ASPI fell by 20 points to close at 21,318, while the S&P SL20 dropped 23 points to close at 5,986.  Market sentiment weakened towards the second half, with the rise in global oil prices contributing to the cautious tone.

The top negative contributors to the index were JKH, BREW, DFCC, DIAL and MELS. Retail investors were the main drivers of today’s activity, with heightened selling sentiment evident, while HNW participation remained around average levels.

Turnover for the day stood at LKR 2.3Bn, which is 36.2% below the monthly average of LKR 3.6Bn. Activity in the Capital Goods sector dominated turnover, contributing 31% of the total, followed by the Food, Beverage & Tobacco, and Diversified Financials sectors, which together accounted for 33%. Foreign investors turned net sellers, posting a net outflow of LKR 612.5Mn

BOND MARKET

Mixed sentiment keeps yield curve broadly unchanged

The secondary market continued to exhibit mixed sentiment today, with trading volumes and overall market activity remaining moderate. The yield curve remained broadly stable compared to the previous week.

Within the 2028 segment, the 15.02.2028, 15.03.2028, 01.05.2028, and 15.12.2028 maturities traded within the range of 10.00% to 10.10%. Further along the curve, the 01.03.2030, 15.05.2030, 01.07.2030, 01.08.2030, and 15.10.2030 maturities traded between 10.30% to 10.48%.

Further along the curve, the 01.02.2031 maturity traded at 10.50%, while the 01.12.2031 maturity changed hands at 10.75%. The 01.10.2032 and 15.12.2032 maturities traded within the range of 11.00% to 10.90%.

Further along the curve, the 15.01.2033 maturity traded in the range of 11.15% to 11.10%, while the 01.06.2033 and 01.11.2033 maturities traded at 11.25% and 11.30%, respectively.

Meanwhile, the 15.10.2034 maturity changed hands at 11.48%, while the 15.08.2036 maturity traded at 11.75%. On the external front, the LKR appreciated against the USD, standing at LKR 327.90/USD, compared to LKR 328.01/USD seen earlier. Market liquidity in the banking system marginally expanded to LKR 348.76Bn from LKR 347.33Bn recorded previously.

Furthermore, headline inflation, as measured by the Colombo Consumer Price Index (CCPI), accelerated to 8.0%YoY in August 2026 from 7.3% in July 2026. The 70bps increase was primarily due to the statistical base effect in food inflation.

Popular maturities:

15.10.30: -10bps

15.10.2032: -10bps

15.12.2032: -10bps

-First Capital Research-