Bourse closes in green amidst the volatility

• 07 Nov 2024
• 0

Colombo Bourse witnessed a relatively volatile trading day compared to the previous trading session as the index recovered from 3 consecutive losses with the ASPI closing at 12,728, gaining 9 points.

 JKH, MELS, DIPD, HHL and LOLC emerged as the top positive contributors to the index. Moreover, selected stocks such as DIPD, AEL and LMF witnessed increased investor interest during today’s trading session.

Meanwhile, amidst the decreased participation from both retail and HNW investors compared to previous trading session, turnover dropped by 33.8% from yesterday to LKR 2.1Bn, falling 25.4% below the monthly average of LKR 2.8Bn.

Moreover, the Capital Goods sector led the turnover by 35%, followed by the Banking and Food, Beverage & Tobacco sectors jointly contributing 36% of the overall turnover. Foreign investors remained net buyers with a net inflow of LKR 45.2Mn.

Yield curve sees mild buying interest on short to mid end

The secondary bond market yield curve witnessed mild buying interest primarily on the short to mid end of the curve. The market experienced thin trading volumes and limited activity.

A slight decrease in the yield curve for bonds maturing between 2027 and 2028 was witnessed. Amongst the traded maturities, notable trades were seen on the short to mid end of the curve.

On the short end of the curve, 01.05.27, and 15.09.27 were seen trading at rates of 11.20%, and 11.30%, respectively. On the belly end of the curve, 15.03.28, 01.05.28, 01.07.28, and 15.12.28 traded at rates of 11.67%, 11.70%, 11.75%, and 11.80%, respectively.

Additionally, the CBSL announced the issuance of LKR 132.5Bn in treasury bonds at the upcoming bond auction to be held on the 12th of Nov-24.

Meanwhile, on the external front, the LKR appreciated against the USD, closing at LKR 292.94/USD, compared to LKR 293.11/USD recorded the previous day.

Similarly, the LKR also appreciated against other major currencies including the GBP, EUR, CNY, and JPY. Additionally, Sri Lanka’s Official Reserve Assets increased significantly by 7.9% to USD 6.46Bn in Oct-24 from USD 5.99Bn in Sep-24.

CBSL holdings of government securities remained unchanged, closing at LKR 2,515.62Bn today. Overnight liquidity in the banking system expanded to LKR 169.51Bn from LKR 152.57Bn recorded the previous day.

Courtesy: First Capital Research

YOU MAY ALSO LIKE