Colombo bourse remained firmly in the green zone, reflecting its bullish streak for the 10th consecutive session, driven by an increase in retail participation, with trades reaching 19,000 during the day.
Initially, mixed sentiment prevailed, leading to profit booking in selected banking stocks. However, as the day progressed, bullish momentum strengthened supported by active buying in banks and heavyweight index stocks, resulting in 42 points gain to close at 11,962.
Moreover, investor interest centered on CALT throughout the day, fueled by anticipation of a potential dividend announcement. Turnover remained healthy at LKR 2.6Bn, a 16% increase compared to the monthly average, driven by high net worth and institutional investors participating in off-board transactions, contributing 20% to total turnover.
Both banking and consumer durables sectors collectively accounted for 40% of turnover, signaling positive market rebound and investor confidence.
Buying interest emerges post bond auction
The secondary bond market witnessed slight buying interest across the yield curve following the acceptance of the LKR 85.0Bn bond auction held yesterday.
On the shorter end of the curve, activity was noticed on the 15.12.26 maturity with trades taking place at 11.35% whilst 15.01.27 maturity recorded trades at 11.40%.
Moreover, on the belly end activities were observed on the 01.07.28 and 15.12.28 maturities which recorded trades at 12.10% and 12.15%, respectively.
Meanwhile, on the longer end, 01.07.32 liquid maturity observed trades at 12.62% during the day. Moreover, at the LKR 65.0Bn bill auction held today, CBSL partly accepted the offered, whilst weight average yields came down across all 3 maturities.
From the offered maturities today, full reception was enticed on the 91 day and the 182-day maturities with CBSL accepting bids at 10.10% (-01Bps) and 10.27% (-03bps), respectively.
Meanwhile, the 364-day bill was partly accepted by the CBSL today, whilst weighted average yields slid down by 01bps to 10.27%. On the external side, LKR appreciated further against the greenback and mid-rate for today stood at LKR 298.96/USD.
Courtesy: First Capital Research
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