The Colombo Bourse opened on a positive note, but profit-taking following two consecutive sessions of gains led to fluctuations throughout the day, limiting the market’s upward momentum.

Despite the volatility, the market managed to close marginally higher, with the ASPI gaining just 3 points to close at 21,624 while the S&P SL20 rose by 8 points to close at 6,067. HAYL, ACL, SLTL, HNB and DIAL were the top positive contributors to the ASPI, providing support to the broader market.

Turnover remained around average levels, with retail investors accounting for a significant share of market activity, while HNW participation remained low. Daily turnover stood at LKR 2.1Bn, marking a decrease of 38.0% over the monthly average of LKR 3.4Bn.

Banking sector led the daily turnover with a share of 22%, followed by the Insurance, and Food Beverage & Tobacco sectors collectively contributing 32%. Foreign investors remained net sellers, posting a net outflow of LKR 18.5Mn.

BOND MARKET

The secondary market stays lackluster with selling pressure

 The secondary market witnessed a sluggish trading day, amidst moderate volumes and market activity. Selling interest dominated the market, while the 2030 segment saw approximately 5-10bps increase in yields.

At the short end of the yield curve 15.10.2029 changed hands at 10.45%. Over the 2030 segment, 01.03.2030 traded between 10.37%-10.51%, 01.08.2030 traded at 10.80%, and 15.10.2030 changed hands within 10.80%-10.85%.

Moving ahead, 01.02.2031 traded at 10.92%, while 01.12.2031 traded between 11.05%-11.10%. Also, 01.10.2032 changed hands between 11.10%-11.15%. Towards the belly end of the yield curve, 01.06.2033, 01.11.2033, and 15.10.2034 traded at 11.50%, 11.65% and 11.80% respectively.

Finally, at the long end, 15.08.2036 maturity was dealt higher at 11.91%. On the external front, the LKR marginally appreciated against the USD, standing at LKR 328.34/USD, compared to LKR 328.36/USD seen earlier. Market liquidity in the banking system expanded to LKR 362.14Bn from LKR 355.30Bn recorded previously.

-First Capital Research-