Completion of the EDR boosted the sentiment of the investors as ASPI reached over a three-month high gaining 111 points and closing the day at 12,165.
The banking sector stocks led the market as usual while revitalized interest on CITW was also observed.
CTHR, SAMP, HNB, JKH and COMB emerged as the top positive contributors to the index. Additionally, the number of trades is at healthy levels, indicating an improvement in market activity.
Meanwhile, amidst the improved participation of both retail and HNW investors turnover stood at LKR 2.8Bn, marking a 47.0% increase from the monthly average standing at LKR 1.9Bn.
The Banking sector leading the turnover contributing 52%, followed by the Capital Goods, and Diversified Financials sectors jointly contributing 20% of overall turnover. Foreign investors turned net sellers with a net outflow of LKR 84.9Mn.
Mixed sentiment stirs the market amid EDR
The secondary market adopted a mixed sentiment during the day despite the finalization of the EDR process as the country completed the OCC and IMF consultation proceedings.
The mid and long tenors displayed selling interest whilst short tenors mostly witnessed buying interest.
Among the traded maturities, on the short end of the curve, 01.06.26, 01.08.26 and 15.12.26 maturities traded between 10.37% - 10.45%. 15.12.27 tenor traded at 11.50% whilst 2028 maturities namely, 15.02.28, 15.03.28, 01.07.28 and 15.12.28 traded between the range of 11.60% - 11.80%.
Towards the belly end of the curve, 15.09.29 and 15.10.30 maturities traded at 12.00% and 12.20% respectively. On the external side LKR appreciated against the USD recording at LKR 293.78 compared to the previous day which was recorded at LKR 295.47.
Meanwhile, LKR appreciated against most of the major currencies such as GBP, EUR, JPY etc. The AWPR declined by 19bps compared to the previous week as it was recorded at 9.13% for the week ending 04th Oct 2024 whilst the AWLR for Aug 2024 was recorded at 12.12%.
Courtesy: First Capital Research
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