The positive investor sentiment continued in the Colombo Stock exchange for the 5th consecutive day as ASPI closed the day at 12,746, gaining 136 points whilst ASPI experienced a 19.3% increase year-to-date amidst the positive developments in the country.
Positive sentiment towards Banking sector counters and conglomerates remained broadly unchanged and investors maintained an optimistic sentiment towards companies with good fundamentals.
HNB, COMB, SAMP, MELS and CARG emerged as the top positive contributors to the index whilst retail participation also continued to improve.
Meanwhile, turnover experienced a 10.3% decrease from yesterday and stood at LKR 4.0Bn. yet a 61.7% increase from the monthly average standing at LKR 2.5Bn.
The Banking sector led turnover by 43%, followed by the Diversified Financials and Food, Beverage & Tobacco Sectors jointly contributing 23% of the overall turnover. Foreign investors turned net buyers, with a net inflow of LKR 15.2Mn.
Auction yields marginally inch up on short tenors
At the LKR 145.0Bn weekly T-Bill auction held today, the CBSL fully subscribed to the entire offered amount.
The 3M T-Bill received the highest demand, leading to an oversubscription, while CBSL accepted LKR 53.2Bn of 6M T-Bill (slightly below the offered of LKR 55.0Bn).
In contrast, the 1Y T-Bill saw minimal interest, with only LKR 2.7Bn accepted. Meanwhile, weighted average yields edged higher after five weeks, with the 3M and 6M T-Bills closing at 9.35% (+3bps) and 9.68% (+3bps) respectively. However, the WAYR on the 1Yr T-Bill remained steady at 9.95%.
Meanwhile, in the secondary market, bond yields remained relatively stable amid limited investor activities and thin trading volumes. Amid mixed sentiment, mid-tenor bonds maturing on 01.07.28 and 15.12.28 traded at 11.80% and 11.95%, respectively.
On the longer end, bonds maturing on 15.09.29 and 15.05.30 changed hands at 12.00% and 12.20%, respectively. On the external side, the LKR slightly appreciated against the greenback closing at LKR 293.5. Meanwhile, overnight liquidity recorded at LKR 126.9Bn while CBSL Holdings remained unchanged at LKR 2,515.6Bn.
Courtesy: First Capital Research
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