Weak sentiment continued to weigh on the CSE, with the market extending its downtrend and turnover remaining below LKR 1.0Bn.

Volatile oil prices and persistent geopolitical uncertainty continued to dampen investor confidence, keeping market activity subdued.

The ASPI shed 76 points to wrap up for the day at 19,984, whilst the S&P SL20 dropped 19 points to close at 5,682.

The top negative contributors to the index were LOLC, DIAL, HNB, LAMB and OSEA. Muted participation from both retail and HNW segments resulted in the lower-than-average turnover, which stood below LKR 1.0Bn for the 2nd consecutive day, totaling LKR 795.0Mn.

This is approximately 41.7% below the monthly average level of LKR 1.4Bn.

The topmost contribution to today’s turnover came from the Banking sector, which accounted for 32% of the total, followed by a combined contribution of 30% from the Capital Goods, and Food Beverage & Tobacco sectors. Foreign investors remained net sellers, posting a net outflow of LKR 59.8Mn.

BOND MARKET

Early selling gives way to measured buying

Yesterday’s selling momentum persisted through the early hours of trading today. However, buying sentiment appeared towards the latter part of the day, keeping the overall investor sentiment mixed and prompting the yield curve to remain largely anchored.

Trading volumes remained moderate unlike yesterday, which saw elevated volumes driven by a notable rise in investor participation.

At the belly of the yield curve, 15.06.2034 and 15.09.2034 traded at 12.55% while 15.01.2033 was seen changing hands between 12.30% to 12.20%.

Within the 2031 segment 01.12.2031 traded between 11.95% to 11.85% and 01.02.2031 traded from 11.80% to 11.70%. Finally, 01.07.2030 and 01.03.2030 traded within 11.65%-11.55% and 11.50%-11.40% respectively.

On the external front, the LKR depreciated against the USD, standing at LKR 331.54/USD, compared to LKR 331.28/USD seen earlier. Market liquidity in the banking system expanded marginally to LKR 389.29Bn compared to LKR 386.40Bn recorded previously.

-First Capital Research-