The stock market retreated into negative territory today as profit-taking emerged among retail investors, coupled with mixed sentiment regarding debt restructuring which caused the broader ASPI to close 33 points lower at 11,798, after peaking at an intra-day high of 11,849.
Blue-chip giants like JKH and MELS, alongside mid-cap firms such as CTC, CDB, and HHL, contributed positively to the ASPI, while HAYL exerted downward pressure.
Trading was active, with 20,427 transactions recorded. Retail investors engaged in profit-taking, particularly in Banking sector stocks like SAMP and HNB. CALT topped daily turnover, accounting for 22%, buoyed by its second interim dividend declaration.
Despite the bearish trend, daily turnover stood at LKR 2.2Bn, a marginal 3.8% decrease from the monthly average of LKR 2.3Bn. The Diversified Financials sector led turnover at 30%, surpassing the Banking sector which contributed 18%, while the Food, Beverage, and Tobacco sector contributed 18%. Foreign investors turned net sellers, with a net outflow of LKR 20.7Mn for the day.
Slight selling despite dry sentiment
The secondary market yield curve slightly ticked high, as a slight selling pressure emerged on the belly end of the curve. Accordingly, liquid tenors 2026, 2027 and 2028 saw some activities with 15.05.2026 trading at 11.20%.
Further, 15.12.2026 hovered between 11.32%-11.35% whilst on the 2027 tenor, 01.05.2027 and 15.09.2027 recorded transactions at 11.78% and 12.01%, respectively.
Moreover, 15.03.2028 enticed trades at 12.15% whilst 01.07.2028 and 15.12.2028 closed at 12.20% and 12.13%, respectively.
However, investor participation remained dreary and volumes were thin, as concerns on the external debt restructuring and bondholder negotiations have created uncertainty.
On the external side, LKR depreciated against the USD to close at LKR 300.9. Meanwhile, overnight liquidity stood at LKR 155.3Bn and CBSL holdings remained stagnant at LKR 2,675.6Bn.
Courtesy: First Capital Research
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