The market closed the week on a positive note at 8,818, gaining 51 points whilst displaying an overall uptrend during the day. The positive sentiment was driven by the reduction in policy rates and the downward revision of deposit rates in the banking sector, which subsequently increased the interest in the equity counters.

Treasury shares gained during the day owing to the dip in bill yields and following the announcement of First Capital Holdings’ divestment of 33% stake to People’s Leasing & Finance for a consideration of LKR 4.95Bn.

Meanwhile, market turnover hit over a 2-month high and recorded at LKR 2.2Bn (213.6% cf. monthly average turnover of LKR 701.0Mn) largely led by multiple crossings and contributed by the Capital Goods sector (66%) and the Diversified Financials sector (11%). Foreign investors remained net sellers with low participation, recording a net foreign outflow of LKR 117.8Mn.

The secondary bond market active on ultra-thin volumes

The secondary bond market witnessed ultra-thin volumes and limited activities during the day, with slight buying interest observed on 15.05.26 maturity at 24.60%.

Furthermore, mixed activities were observed on the 15.09.27 maturity, which recorded trades between 23.50%-23.30%. Meanwhile, the CBSL announced its weekly bill auction for next week and a total of LKR 180.0Bn is expected to be raised, out of which LKR 70.0Bn is expected to be raised from 91-day maturities, whilst LKR 60.0Bn and LKR 50.0Bn are scheduled to be raised from 182-day and 364-day maturities.

Courtesy: First Capital Research