ASPI takes a 3.8% month-to-date hit fueled by profit taking

• 14 Mar 2025
• 0

The Colombo bourse experienced a dull trading session with the ASPI on a standstill, although slight volatility persisted, as the market began on a positive note before the trend reversed, reporting a marginal decline to close the day at 15,860.

HNW participation was significantly low while retail investors remained moderately active. HNB, NDB, BUKI, CTHR and AEL emerged as the top negative contributors to the index.

The turnover stood at LKR 1.1Bn, marking a 63.7% decrease from the monthly average of LKR 3.0Bn. The Food, Beverage & Tobacco sector was the most significant contributor to the overall turnover with a 28% share, followed by the Banking sector at 20% and the Capital Goods Sector at 18%. Foreign investors were net buyers, with a net inflow of LKR 90.9Mn.

Yield curve tapers down from mid to long end

Bond Market participants continued to maintain the buying stance, following the T-Bond auction which was held on 12th Mar-25, resulting in both high trading volumes and market activity.

Accordingly, the secondary market yield curve experienced a slight downturn from mid to long end of the curve by c.5-10bps. The secondary market interest was predominantly in the 2028, 2029, 2030, 2031 and 2032 maturities.

Accordingly, at the belly end of the curve, 15.02.2028 and 01.05.2028 maturities traded at the rates of 9.98% and 10.05% respectively, whilst both 01.09.2028 and 15.10.2028 bonds traded at the rate of 10.20%.

Meanwhile, 15.12.2028 maturity traded at the rate of 10.32% and 15.06.2029, 15.09.2029 and 15.12.2029 maturities traded at the rates of 10.50%, 10.55% and 10.60%, respectively.

Furthermore, 15.05.2030, 15.10.2030, 15.03.2031, 01.12.2031, 01.10.2032 and 15.12.2032 traded at the rates of 10.80%, 10.85%, 11.15%, 11.25%, 11.30% and 11.35%, respectively. 

On the external front, the LKR slightly appreciated against the USD, closing at LKR 295.4/USD compared to LKR 295.5/USD recorded the previous day.

Courtesy: First Capital Research

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