Colombo stock market witnessed another day of gains for the 6th consecutive session easing on the green zone, gaining 77 points closing at 11,625.
Despite the subdued sentiment during the first half, positive momentum was regained, largely driven by the Banking sector shares such as HNB and COMB alongside prominent Blue chip companies mainly, JKH, pushing the ASPI higher.
Retail and HNW investors dominated market participation throughout the day whilst HAYL and JKH witnessed increased investor interest coupled with Banking counters which aided the overall turnover to surpass the LKR 2.0Bn mark for the 4th consecutive session, registering at 2.1Bn (7% higher than the monthly average turnover of LKR 2.0Bn), attributed by the Banking and Capital Goods sectors for a joint contribution of 55%. Net foreign investors remained net buyers recording a net inflow of LKR 137.3Mn.
Upswing in auction yields signals a turnaround in sentiment
The secondary market yield curve displayed a slight uptick across the short to mid end of the curve following the T-Bill auction results where weighted average yield rates saw an increase.
As a result, selling sentiment observed notably on the 2026 maturities, which traded within the range of 11.25% to 11.30%, while the liquid tenors of 2028 changed hands between 12.15% to 12.20%.
During the weekly T-Bill auction held today, 98.1% of the total offered of LKR 135.0Bn was accepted, whilst WAYR were noted to be on an upward trajectory.
Notably, the 3M maturity experienced heightened acceptance, with the CBSL accepting LKR 57.8Bn, surpassing the offered amount of LKR 30.0Bn, at a WAYR of 10.11% (+4bps) while 06M maturity got accepted at 10.30% (+7bps).
Moreover, 1Yr maturity observed lower acceptance, while the WAYR remained unchanged at 10.28%. On the external side LKR continued to appreciate against the green back recording at LKR 300.0 during the day.
Courtesy: First Capital Research
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