The stock market exhibited a bearish trend driven by Sri Lanka's inability to reach a consensus on restructuring terms with bondholders while retailer activity remained robust, albeit with decreased participation from HNWIs.
The ASPI concluded at 11,792, marking a decline of 214 points with banking sector stocks such as COMB, SAMP, and HNB, along with blue-chip companies like MELS and LOLC, weighed down the index, overshadowing minimal positive contributions.
Number trades settled at a 18,000 with retailers actively engaging in profit-taking from major banks like COMB, SAMP, and HNB, which had seen price gains in the previous week.
Turnover amounted to LKR 1.5Bn, down 36.4% from the LKR 2.3Bn monthly average, primarily led by the Banking sector (20%) and the Diversified Financials and Food, Beverage and Tobacco sectors, collectively contributing 29%. Foreign investors shifted to a net buying position with a net inflow of LKR 43.1Mn for the day.
Yield curve stable as dreary sentiment extends
The secondary market yield curve remained broadly unchanged during the day, with investors adopting a cautious stance amidst uncertainties surrounding external debt restructuring talks and the ongoing holiday season, which limited market participation.
Despite subdued trading activity, there were some transactions observed in liquid maturities during today's session. Accordingly, 01.08.2026 registered trades at 11.15% whilst 15.12.2026 hovered between 11.35%-11.30%.
Further, 15.12.2028 traded at 12.10%. Meanwhile, CBSL expects to raise LKR 78.0Bn from tomorrow’s T-Bill auction. Overnight Liquidity closed at LKR 138.3Bn and CBSL Holdings remained stagnant at LKR 2,675.6Bn. On the external side, LKR depreciated against the greenback after consecutive sessions of gains, closing at LKR 298.9.
Courtesy: First Capital Research
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