The market experienced a mixed trading sentiment today as uncertainty pertaining to debt restructuring caused major volatility in the investor sentiment and resulted in ASPI dipping more than 100 points in the morning yet recovering towards the latter part of the day to close at 11, 831, marking a gain of 39 points.
Notably, blue-chip giants such as JKH, VONE, and LOLC spearheaded the ASPI's ascent, supported by strong performances from COMB and LIOC. Trading activity remained moderate, with 17, 887 trades executed throughout the day. Retail investors displayed notable interest, particularly favoring the Banking and Hotel sector counters.
Despite the overall fluctuations, the day saw a turnover of LKR 2.0Bn, a slight dip of 12.1% from the monthly average of LKR 2.3Bn. The Banking sector led the charge, accounting for 31% of the turnover, followed by the Diversified Financials and Capital Goods sectors, contributing a collective 21%. Foreign investors remained in a net buying stance, resulting in a net inflow of LKR 147.9Mn for the day.
Ultra-thin volumes continue in the secondary bond market
The secondary bond market enticed a mixed sentiment amid ultra-thin volumes during today’s session, as investors took a cautious approach, eagerly waiting to see the outcome of the bondholder negotiations, which recommenced yesterday, following the March-24 talks, which ended up without a consensus.
Thus, thin trades were observed on the belly-end of the yield curve with 01.07.25 maturity recording trades between 10.55%-10.60% whilst 01.06.25 maturity traded at 11.15%. Moreover, trades were also observed on the 15.12.26 maturity, which saw trades at 11.34%-11.32% whilst 15.03.28 maturity saw trades taking place between 12.15%-12.10% during today’s trading session.
Meanwhile, CBSL conducted its weekly bill auction today and fully accepted the total offered LKR 78.0Bn. CBSL accepted LKR 30.0Bn from the 91-day bill at 10.03% (-07bps) whilst LKR 30.0Bn was accepted from the 182-day bill at 10.22% (-05bps).
However, only part of the offered was accepted from the 364-day bill, accepting LKR 18.0Bn from the offered LKR 23.0Bn at 10.23% (-04bps). Meanwhile, on the external front, LKR continued to depreciate against the USD for the 2nd consecutive day and was recorded at LKR 299.83.
Courtesy: First Capital Research
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