Colombo bourse experiences a recovery from profit-taking

• 22 Nov 2424
• 0

Colombo Bourse experienced a recovery from profit-taking yesterday as the market faced a relatively volatile trading session with interest visible on selected Banking sector stocks such as SEYB and PABC, as the ASPI closed the session in green 13,054, gaining 72 points, marking a 0.6% increase from the previous day.

BREW, COMB, CINS, SEYB and DIPD emerged as the top positive contributors to the index. Additionally, specific stocks in the Hotel and Plantation sectors continued to attract investor interest throughout the day.

In contrast to previous sessions, the market saw an increase in participation from retail investors. Accordingly, turnover stood at LKR 2.0Bn, marking a 51.3% decrease from the monthly average.

Moreover, the Banking sector led the turnover by 39%, followed by the Capital Goods, and Food, Beverage & Tobacco sectors jointly contributing 23% of the overall turnover. There was a net foreign inflow of LKR 16.9Mn signaling interest in internal investments.

Bond Market experiences limited activity and trades

The secondary bond market yield curve remained relatively fixed and broadly unchanged amidst a notable lack of activity in the market.

Investors adopted a cautious wait-and-see stance ahead of the upcoming Monetary Policy Meeting scheduled for 27th Nov-24, and in anticipation of the conclusion of the 3rd review by the IMF.

Amongst the traded maturities, limited activity was seen amongst the 2028 maturities, where 15.03.28 and 01.05.28 were seen trading at a rate of 11.12%.

Meanwhile, on the external front, the LKR depreciated against the USD, closing at LKR 290.99/USD, compared to LKR 290.98/USD recorded the previous day.

Conversely, the LKR appreciated against the GBP, closing at LKR 366.23/GBP compared to LKR 368.30/GBP recorded the previous day. Similarly, the LKR appreciated against other major currencies including the EUR, and CNY.

CBSL holdings of government securities remained unchanged, closing at LKR 2,515.62Bn today. Overnight liquidity in the banking system contracted to LKR 133.29Bn from LKR 143.37Bn recorded the previous day.

Courtesy: First Capital Research

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