Colombo bourse witnessed a sustained bullish trend driven by robust interest on banking sector and selected Blue-chip counters.
Bulls dominated the market, leading to continuous positive trading throughout the day, reaching an intraday high of 11,755 during midday before closing at an 8-month high of 11,698, gaining 74 points.
Notably, banking sector shares such as COMB, HNB, and NDB continued to drive the index, leveraging their discounted prices. Buoyed by a resurgence in overall market sentiment and lower interest rates, funds began to flow from retailers to the equity market.
As a result, turnover continued to record at a healthy level of LKR 3.2Bn (+57% cf. monthly average turnover of LKR 2.0Bn) supported by retailers, HNWIs and institutional investors.
Banking sector emerged as a major contributor, accounting for 42% of the overall turnover, fueled by active trading both on and off the board.
Bond Market adopts a sluggish trend
The secondary bond market remained sluggish for yet another day, with minimal activity observed on the back of limited trades. Short and mid tenors mostly registered trades during the day as, 15.09.27 tenor traded at 12.00% whilst, 15.01.28 traded at 12.10%.
Notably, LKR 85.0Bn, bond auction is to be held on the 8th of Apr-24 where, LKR 25.0Bn is to be issued out of 15.12.26 maturity, LKR 25.0Bn is to be issued out of 15.09.29 maturity and LKR 35.0Bn is to be issued out of 01.10.32 maturity.
Meanwhile, Overnight liquidity improved compared to the previous day registering at LKR 121.5Bn and CBSL holdings recorded at LKR 2,675.6Bn. On the external side LKR marginally appreciated against the USD recording at LKR 299.89 at the end of the day.
Courtesy: First Capital Research
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