The bourse continued its course in an upward trajectory, moving forth with a positive momentum and making a swift recovery following a week of low investor sentiment.
The ASPI closed at 12,076, reaching its highest level since February 2022 and marking a 1.43% increase from the previous day to which the most significant contributors were COMB, HNB, SAMP, JKH, and LOLC. Investor sentiment remained strong, steering keen interest in banks and conglomerates, contrasting the retail focused trends of the previous weeks.
Multiple crossings also took place stemming from strong investor interest in the banking sector. Turnover remained robust, standing at LKR 2.9Bn where the banking sector led turnover at 25%, while the materials and food, beverage and tobacco sectors jointly contributed 31% to the turnover.
There was a net foreign outflow of LKR 8.7Mn signaling interest in outward investments. The market overall continued its optimistic course driven by positive investor sentiment primarily in the banking sector.
Bullish sentiment prevails across short to mid tenors
The secondary market, reversing its consecutive dull sentiment, experienced a surge in buying activity, particularly in the short to mid tenors, following a contraction in weighted average yields observed across the board at the Treasury bill auction held yesterday.
Notably, short tenors such as 15.05.26, 01.08.26, 15.12.26, and 15.01.27 traded within the range of 11.35% to 11.15%. Meanwhile, on the belly end of the curve, 01.05.27 and 15.9.27 hovered between 11.85% and 11.65%, while 2028 tenors garnered investor interest, with 15.03.28, 01.05.28, 01.07.28, and 15.12.28 trading between 12.20% to 12.00%, displaying moderate volumes.
On the external side LKR appreciated sharply against the greenback and closed below LKR 300.0 and ended the day at LKR 298.7.
Courtesy: First Capital Research
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