Increased buying by HNW Investors powers market surge

• 12 Mar 2025
• 0

The bourse showed signs of recovery, with slight volatility in the first half of the day, followed by steady positivity after midday. The ASPI gained 151 points, closing at 15,861, showcasing a 0.96% increment.

The top positive contributors to the index were COMB, HNB, SAMP, HAYL and JKH. Continued market decline over the past few days fueled bargain buying by HNW investors, while retail participation remained moderate. Banking and blue-chip counters were the primary drivers of today's overall upsurge.

A notable volume of 6.5Mn BOGA shares were traded offboard, amounting to a 6.9% stake change, while contributing largely to today’s Turnover, which stood at LKR 2.4Bn. This marks an 18.8% decrease from the monthly average of LKR 3.0Bn.

The Capital Goods sector was the most significant contributor to the overall turnover with a 27% share, followed by the Banking, and Materials sectors jointly contributing 43%. Foreign investors were net buyers, with a net inflow of LKR 50.0 Mn.

Bond auction notches with yield being steady

Today’s bond auction notched with weighted average yields being steady as the CBSL raised LKR 210.0Bn, achieving full acceptance across all the maturities offered. The 15.12.2029 maturity closed at a weighted average yield rate of 10.72%, with LKR 85.0Bn fully accepted, while the 15.12.2032 and 15.09.2029 maturities closed at weighted average yield rates of 11.40% and 11.50%, respectively, with LKR 75.0Bn and LKR 50.0Bn fully accepted from the respective maturities.

In the secondary market, the yield curve saw a slight decline, with the 2028, 2029, and 2030 bond maturities drawing significant buying interest, leading to moderate volumes and high levels of activity. Amongst the traded maturities, at the belly end, 15.02.2028, 15.03.2028, 01.05.2028 and 01.07.2028 bonds were traded between 10.20% to 10.00%. Whilst 01.09.2028 and 15.10.2028 bond maturities traded in the range of 10.35% to 10.24%.

Furthermore, following the bond auction, 15.09.2029 bond maturity traded in the range of 10.72% to 10.65% and 15.10.2030 maturity traded at the rate of 10.90%.  On the external front, the LKR depreciated against the USD, closing at LKR 295.50/USD compared to LKR 295.45/USD recorded the previous day.

Courtesy: First Capital Research

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