The Colombo Bourse started the week echoing the positive sentiment of the previous week as most of the sectors witnessed price gains across the board.
Amidst the increased participation from retail, HNW and institutional investors compared to the previous session, APSI reached over 2 years and 8-months high, closing at 12,610, gaining 92 points.
LOLC, BIL, NDB, SAMP and MELS emerged as top positive contributors to the index. Meanwhile, amidst multiple off-board transactions, the turnover surged past LKR 4.4Bn, marking a 72.6% increase from the monthly average standing at LKR 2.6Bn. Moreover, off-board transactions contributed 36.5% to the overall turnover.
Meanwhile, the Banking sector led turnover by 36%, followed by the Capital Goods and Material Sectors jointly contributing 31% of the overall turnover. Foreign investors remained net sellers, with a net outflow of LKR 12.2Mn.
Investor sentiment takes a turn following bond auction
The secondary bond market experienced a notable reversal in investor sentiment as modest buying interest emerged after a week of sustained selling pressure.
This uptick in buying appetite, albeit on low volumes, was particularly evident in mid-tenor bonds, 2028 and 2029, following today’s bond auction.
Specifically, trading activity was observed in the 2028 tenor, with bonds such as the 15.02.2028 and 15.03.2028 closing transactions between 11.76% to 11.70%. Other maturities, including the 01.05.2028 and 01.07.2028, hovered around 11.85% to 11.80%, while the 15.12.2028 registered trades between 11.95% to 11.90%.
On the 2029 bonds, both the 15.06.2029 and 15.09.2029 closed trades at 12.00%. Additionally, today’s Treasury Bond auction raised LKR 32.5Bn, yielding full acceptance in both maturities offered.
The 15.10.2028 bond closed with a weighted average yield rate of 11.84%, while the 01.06.2033 bond saw a slightly higher rate of 12.36%. Meanwhile, CBSL aims to raise LKR 145.0Bn in tomorrow’s weekly Treasury Bill auction.
On the external side, LKR remained broadly stable against the USD, closing at LKR 293.7/USD compared to the previous day’s closing. Moreover, overnight liquidity improved to LKR 186.62Bn while CBSL Holdings remained stagnant at LKR 2,515.62Bn.
Courtesy: First Capital Research
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