The Colombo Bourse experienced yet another volatile trading day as investors booked profits amidst moderate buying interest.
The market started the day on a bearish note, reaching an intraday low of 12,035 amidst profit taking. However, the market gradually recovered after midday as buying interest emerged in selected Banking sector counters, closing the day at 12,164 gaining 12 points. CINS, HAYL, COMB, MGT and SAMP emerged as the top positive contributors to the index.
Amidst the moderate participation from both retail and HNW investors, turnover stood at LKR 1.6Bn, marking a 21.4% decrease from the monthly average standing at LKR 2.0Bn.
Furthermore, 37% of the overall turnover was contributed by the Capital Goods sector whilst 35% of the turnover was jointly contributed by the Banking and Food, Beverage & Tobacco sectors.
Notably, foreign investors remained net buyers with a net foreign inflow of LKR 267.1Mn on the back of strong foreign buying interest on JKH with a foreign inflow of LKR 132.7Mn.
Yields stay static ahead of the bond auction
The secondary market yield curve remained broadly unchanged as the market participants opted to lay low ahead of the bond auction to be held on 11th Oct 2024.
The overall market delivered low volumes with limited activities. During the day, on the mid end of the curve, 15.02.28, 15.03.28 and 01.05.28 maturities hovered in the range of 11.75%-11.80% while 15.09.29 maturity closed at 12.02%. CBSL announced the issuance of LKR 95.0Bn worth of T-Bonds through an auction scheduled for tomorrow.
This issuance includes LKR 70.0Bn and LKR 25.0Bn to be issued under the maturities of 15.03.28 and 01.10.32 respectively. Moreover, in the forex market, the LKR further appreciated against the USD settling at LKR 292.9.
Similarly, LKR marginally appreciated against other major currencies such as the AUD, GBP, and EUR. Meanwhile, overnight liquidity for the day was recorded at LKR 151.6Bn while CBSL holdings remained steady at LKR 2,515.6Bn.
Courtesy: First Capital Research
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