The Colombo Bourse experienced a recovery from profit-taking yesterday as the market faced a relatively volatile trading session with Banks and blue-chip firms recording mixed trading activity, as the ASPI closed the day flat at 13,114. JKH, COMB, LIOC, AEL and RIL emerged as the top positive contributors to the index.
Additionally, stocks in the Food, Beverage, & Tobacco sector, such as CCS and WATA, along with, Hotel sector counters continued to attract investor interest throughout the day.
Participation from both retail and HNW investors saw a decline compared to previous sessions, with turnover falling by 26.8% from the monthly average and accounted at LKR 2.7Bn, where the Capital Goods sector led turnover, accounting for 26%, followed by the Banking and Food, Beverage & Tobacco sectors, which together contributed 34% of the total turnover. Foreign investors remained net sellers with a net outflow of LKR 366.0Mn.
Auction yields dip further as bull rally continues
The secondary market yield curve continued to dip across the board, driven by sustained bullish sentiment, while generating moderate volumes.
Accordingly, buying interest was seen in the 01.08.26 and 15.12.26 maturities, with transactions occurring between 10.30% and 10.05%. Meanwhile, the 01.05.27, 15.09.27, and 15.12.27 maturities hovered in the range of 11.00% to 10.80%.
Moreover, mid tenor maturities 15.02.28 and 15.03.28 traded between 11.15%-11.10%, while, 01.05.28 and 01.07.28 changed hands between 11.25%-11.18% and 15.12.28 maturity traded in the range of 11.30%-11.25%.
Moreover, on the long end, 15.06.29 and 15.09.29 hovered between 11.45%-11.35% while 01.10.32 was also seen actively trading between 11.65%-11.60%.
Meanwhile, at today's weekly T-Bill auction, CBSL fully accepted the total offered amount of LKR 145.0Bn, with each maturity fully subscribed. Additionally, the 06M T-Bills saw a stronger demand, with bids reaching twice the amount offered.
Meanwhile, the weighted average rates further dipped across the board for the second consecutive week. Accordingly, 3M bill declined by 5bps to 9.30%, 6M bill dropped by 4bps to 9.60% and the 1Yr bill declined by 10bps to 9.78%.
On the external side, the LKR further appreciated against the greenback closing at LKR 290.9. Meanwhile, overnight liquidity recorded at LKR 121.4Bn while CBSL Holdings remained unchanged at LKR 2,515.6Bn.
Courtesy: First Capital Research
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