Broad market rebounded positively with an intraday gain of 91 points as the uncertainties hovered around the DDO came to an end. The CBSL signaled the completion of DDO after accepting 37% of all eligible treasury bonds and 84% of bonds held by superannuation funds to be exchanged for new bonds as part of a DDR.

Hence, market opened on an uptrend remained on the rise and closed for the day at 11,439. Moreover, a notable buying spree on MELS was witnessed among retailers and High net worth investors through offboard transactions given the attractive valuations on the share.

Additionally, active collection on Banking counters was witnessed, as the weighted average yields trimmed down at the weekly T- Bill auction after 3 weeks. In the midst of active participation, turnover significantly improved by 95% to LKR 1.8Bn compared to the previous session and was largely backed by the off-board transactions of MELS, HNB and RIL.

Accordingly, Food, Beverage and Tobacco, Capital Goods and Banking sectors jointly contributed 70% to the overall turnover.

Auction yields slump down across the board

At the weekly T-Bill auction held today, total offered amount of LKR 160.0Bn was fully accepted with 03M and 06M tenors experiencing higher reception with an acceptance recorded above the total offered for each maturity.

Meanwhile, auction yields edged down registering a modest dip across the board. Accordingly, weighted average yield of 03M closed at 18.16% (-30bps) while 06M and 1Yr tenors budged down to 15.19% (-17bps) and 13.35% (-23bps), respectively.

Meanwhile, in the secondary market activities turned dry as investors took a wait-and-see approach awaiting the outcome of the phase-II of today’s bill auction. However, during the day 01.05.2028 witnessed trades taking place at 14.20% amidst thin volumes

Courtesy: First Capital Research