The Colombo Bourse advanced today, supported by positive sentiment of global financial markets with ASPI recording the highest intraday gain in two and a half months.

Retail participation increased compared to the previous session, while HNW activity remained relatively subdued. Blue-chip counters including DIAL and HAYL, together with RIL, CCS, and DOCK, emerged as the key positive contributors to the index.

Relatively high activity was observed among counters in the Materials sector, consistent with the previous session. Accordingly, the ASPI gained 225 points to halt the week at 21,620 whilst S&P SL20 index gained 64 points to halt the week at 6,059.

Turnover rose to LKR 2.7Bn, higher than yesterday’s level, although it remained 20.9% below the monthly average turnover of LKR 3.4Bn. The Food, Beverage & Tobacco sector led the daily turnover with a share of 24%, followed by the Capital Goods, and Materials sectors collectively contributing 37%.  Foreign investors turned net sellers, posting a net outflow of LKR 67.0Mn

BOND MARKET

Yield curve stays anchored despite modest selling

Similar to yesterday, selling sentiment continued to dominate, albeit at a more measured pace. The yield curve remained largely stable, supported by intermittent buying interest, while investor activity remained subdued despite moderate trading volumes.

At the short end of the yield curve 15.09.2029 and 15.10.2029 changed hands between 10.34% to 10.40%. Investor interest was especially evident within the 2030 segment with 01.03.2030 trading between 10.45%-10.40% and 15.05.2030 trading higher at 10.50% while 01.08.2030 and 15.10.2030 both changed hands from 10.65% to 10.75%.

Further ahead on the yield curve 01.02.2031 traded between 10.75% to 10.85%. Finally, towards the belly end of the curve 15.01.2033 changed hands from 11.20% to 11.30% while 15.10.2034 traded at 11.75%.

On the external front, the LKR appreciated against the USD, standing at LKR 328.36/USD, compared to LKR 328.59/USD seen earlier. Market liquidity in the banking system expanded to LKR 355.30Bn from LKR 330.09Bn recorded previously.

-First Capital Research