Share market continues its sluggish sentiment amidst steady accumulation

• 15 Oct 2024
• 0

Colombo bourse experienced a day of increased volatility as mixed sentiment dominated the market. The ASPI began the day on a dull note, recovering by midday to close at 12,258, gaining 11 points and marking a 0.09% increase from the previous day.

The most significant contributors towards the positive index were SLTL, MELS, DIAL, LHCL, and CARG. Increased sentiment was displayed amongst hotel stocks, whilst sustained positive sentiment previously seen amongst banks and plantation sector firms diminished.

Turnover saw an increase, standing at LKR 1.9Bn, marking a 27.3% increase from the previous day, where the Capital Goods sector led turnover at 22.4%, followed by the Consumer Services, and Telecommunication Services jointly contributing to 33.4% of overall turnover. There was a net foreign inflow of LKR 139.7 signaling interest in local investments.

Auction yields drop for the 4th consecutive week

The secondary market displayed mixed sentiment throughout the day on mid-tenor bonds. Buying interest prevailed on the 3Yr maturity, with the 15.12.27 bond trading between the range of 11.30%-11.25%.

In contrast, the 4Yr tenors faced selling pressure, with bonds such as 15.02.28, 15.03.28, 01.07.28, and 15.12.28 trading within the 11.55%-11.75% range.

Meanwhile, at the weekly T-bill auction held today, CBSL fully subscribed to the total offered amount of LKR 97.0Bn, with auction yields experiencing a decline of up to 37bps across the board, continuing the downward trend for the 4th consecutive week.

CBSL accepted the total offered for the 3M, 6M, and 1Yr maturities, at Weighted Average Yield Rates (WAYRs) of 9.32% (-37bps), 9.65% (-30bps), and 9.95% (-5bps), respectively. Notably, the overnight liquidity for the day significantly declined to LKR 63.8Bn, whilst CBSL holdings remained stagnant at LKR 2,515.6Bn.

Furthermore, in the forex market, the LKR marginally depreciated against the USD, closing at LKR 292.9 for the day. However, the LKR has appreciated by 9.6%YTD against the USD, reflecting a strong overall performance for the year.

Courtesy: First Capital Research

YOU MAY ALSO LIKE