The Colombo Bourse remained under pressure today, with concerns over rising global oil prices continuing to weigh on investor sentiment.

The ASPI fell 108 points to close at 21,358, while the S&P SL20 declined by 30 points to close at 6,004, reflecting the broader negative sentiment.

Top negative contributors to the ASPI were MELS, BREW, DIAL, CARS and CARG. Turnover improved compared to yesterday but remained relatively low, with the increase being driven by crossings in banking counters.

Retail participation remained subdued as investors continued yesterday’s wait-and-see approach, while HNW participation remained around average levels. Daily turnover stood at LKR 1.5Bn, marking a decrease of 44.4% over the monthly average of LKR 2.6Bn.

Banking sector led the daily turnover with a share of 41%, followed by the Capital Goods, and Diversified Financials sectors collectively contributing 25%. Foreign investors turned net buyers, posting a net

inflow of LKR 16.1Mn.

BOND MARKET

Cautiousness prior T-Bond auction keeps market on the sidelines

The secondary market remained subdued today, with market participants staying on the sidelines ahead of tomorrow’s bond auction.

Consequently, trading activity along the secondary market yield curve was thin, with overall market participation remaining low. Accordingly, the 15.10.2030 maturity changed hands at 10.75%, while the 15.10.2034 maturity traded at 11.85%.

On the external front, the LKR appreciated marginally against the USD, standing at LKR 328.75/USD, compared to LKR 328.77/USD seen earlier. Furthermore, the LKR marginally appreciated against major currencies such as the AUD and CNY, while depreciating against the other major currencies such as GBP, EUR, and JPY.

Additionally, Sri Lanka’s official foreign reserve assets increased by 4.6%MoM to USD 6,905Mn in Aug-26, up from USD 6,600Mn in Jul-26, according to the Central Bank of Sri Lanka. Market liquidity in the banking system expanded to LKR 366.20Bn compared to LKR 363.14Bn recorded previously.

-First Capital Research-