Market consolidates with moderate volumes

• 16 Oct 2024
• 0

The Broad Market experienced another day of market volatility as investors continued the sluggish stance during the day. In the morning hours, the market exhibited subdued sentiment, but the market began to recover by midday, fueled by renewed interest in the Hotel sector counters.

Additionally, selected plantation stocks, such as MASK and AGPL, attracted attention during the day compared to the previous day. Accordingly, the index closed the day in green at 12,290 gaining 33 points. 

DIAL, SPEN, DIPD, RCL and BIL emerged as the top positive contributors to the index. Amidst the mixed participation from both retail and HNW investors, turnover stood at LKR 1.8Bn, marking a 18.3% decrease from the monthly average standing at LKR 2.1Bn. 

The Capital Goods sector led turnover at 16%, followed by Telecommunication Services, and Materials sectors jointly contributing 28% of overall turnover.

Selling interest emerges amidst low volumes

The secondary market yield curve remained broadly unchanged, amidst thin trading volumes and limited market activity. The market experienced some selling interest on the short to mid end of the curve following the weekly T-bill auction held yesterday, where CBSL fully subscribed to the total offered amount of LKR 97.0Bn.

Amongst the traded maturities, notable trades were amongst the 2026, 2027, and 2028 maturities. On the short end of the curve, 15.05.26 was seen trading at a rate of 10.50%. Similarly, 15.09.27, and 15.12.27 traded at rates of 11.20%, and 11.25% - 11.30%, respectively.

Meanwhile, on the belly end of the curve, 01.07.28 was seen trading at a rate of 11.70%.  On the external front, the LKR depreciated against the USD, closing at LKR 293.69/USD, compared to LKR 292.89/USD recorded the previous day. Similarly, the LKR depreciated against other major currencies including the GBP, EUR, CNY, and JPY. 

CBSL holdings of government securities remained unchanged, closing at LKR 2,515.62Bn today. Overnight liquidity in the banking system expanded to LKR 119.88Bn from LKR 63.77Bn recorded the previous day.

Courtesy: First Capital Research

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