The bourse witnessed another day of gains, initially marked by subdued sentiment, but gathered bullish momentum post mid-day, resulting in index to close at 12,190 gaining 85 points to reach a one week high. Speculations surrounding external debt restructuring (EDR) and the finalization of the disbursement of the IMF 3rd tranche stabilized investor sentiment, albeit investors remained cautious.
Conglomerates, banks, and export sector counters primarily influenced the index, with BREW, HNB, LOLC, NDB, and DIAL standing out as the most significant contributors.
Additionally, balanced participation between retail investors and HNWIs was also observed. Meanwhile, turnover saw a 18.8%WoW increase, reaching a total of LKR 1.2Bn. However, it dropped by 26.4% compared to the monthly average standing LKR 1.7Bn.
The Banking sector led turnover at 29.8%, with the Capital Goods and Materials sectors jointly contributing 38.1% to the overall turnover. Foreign investors remained net sellers, recording a net outflow of LKR 104.8Mn.
Auction yields edge up after 8-weeks
At the weekly T-Bill auction held today, CBSL fully accepted the total offered amount of LKR 235.0Bn with 03M and 06M bills oversubscribed amidst higher reception whilst 1Yr bill was undersubscribed.
Reversing the persistent downtick in auction yields, weighted average yield rate of 03M and 1Yr saw an increase after 8 weeks. Accordingly, 03M WAYR closed at 8.70% (+08bps) and 01Yr bill closed at 9.27% (+09bps) while 06M bill remained unchanged at 9.04%. Meanwhile, following the outcome of the primary auction, the secondary market witnessed selling interest across short to mid tenors amidst thin volumes.
Accordingly, on the short end 15.12.2026 recorded trades at 9.85%. On the 2028 tenor, 15.03.2028, 01.05.2028, 01.07.2028 and 15.12.2028 hovered between 10.80%-11.00%. On the mid tenors, 15.10.2030 closed trades at 11.75% whilst 01.10.2032 enticed trades in the range of 11.90%-11.95%. Meanwhile, on the external side, LKR depreciated against the greenback closing at LKR 302.2.
Courtesy: First Capital Research
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