The market exhibited a sideways yet volatile trend, ultimately closing flat at 11,357. Notably, HAYL emerged as a prominent contributor to the index, buoyed by expectations of improved earnings stemming from easing finance costs and heightened profitability, which drew significant investor interest amid declining interest rates.

Moreover, retail investors displayed interest for shares in the Food, Beverage, and Tobacco sectors, with GRAN and DIST leading the charge. The consumer services sector also made a positive impact on the ASPI, with AHPL taking the lead among gainers, largely driven by optimistic expectations for strong results in the forthcoming quarter.

Despite these pockets of activity, overall market participation remained subdued, resulting in a turnover of LKR 1.5Bn, which is 47.4% lower than the monthly average turnover of LKR 3.0Bn. It is noteworthy that the Food, Beverage & Tobacco sector and the Capital Goods sector collectively contributed 52% to the total market turnover.

Slack sentiment extends while slight selling emerges

Activities continued to remain subdued in the secondary market with thin volumes recorded during the day. However, slight selling pressure surfaced in the market following the announcement of the bond auction. In the midst of dry activities 01.08.2026 traded in the range 15.50%-15.65% while 01.07.2028 hovered between 14.64%-14.80%. Meanwhile, CBSL announced the first bond auction for the month aimed at raising LKR 90.0Bn with LKR 50.0Bn raised from the 01.06.2026 maturity while LKR 40.0Bn is raised from the 01.05.2028 maturity.

Courtesy: First Capital Research