Turnover hits a 3-week high

• 06 Jun 2024
• 0

The broader market witnessed a bullish sentiment throughout the trading day closing both indices in green for the 3rd consecutive day.

The ASPI surged to 12,311, gaining 121 points as investor confidence strengthened, lowering the need for higher risk premiums

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The Banking sector counters and blue-chip companies contributed to the index majorly where HNB, BREW, SAMP, COMB and LOLC emerged as the most significant contributors. 

Meanwhile, turnover surged by 25.4% compared to the previous day, totaling at LKR 1.6Bn after 3 weeks, while majority of the contribution came from retail investors.

However, it dropped by 4.5% compared to the monthly average standing LKR 1.6Bn. The Banking sector led the turnover at 42.4%, with the Capital Goods and Food, Beverage and Tobacco sectors jointly contributing 28.6% to the overall turnover. Foreign investors remained net sellers, recording a net outflow of LKR 30.6Mn.

Selling pressure inverts the secondary market

The secondary market witnessed selling pressure across the board during the day backed by moderate volumes owing to the surrounding uncertainty, influenced by the IMF board meeting which is to be held on the 12th Jun-24.

Limited trades were registered during the day namely, 15.05.26, 01.06.26, 01.08.26, 15.12.26 and 15.01.27 traded at 9.70%-10.10% whilst 15.01.28, 15.03.28, 01.07.28, 01.09.28 and 15.12.28 traded between the range of 10.80%-11.05%.

Moreover, a mixed sentiment was observed towards the long end of the curve as 15.05.30 traded between 11.75%-11.80%. On the external side LKR slightly depreciated against the USD as it was recorded at LKR 302.3. Overnight liquidity was recorded at LKR 175.9Bn whilst CBSL holdings remained stagnant at LKR 2,635.6.

Courtesy: First Capital Research

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