ASPI tumbles amid intensified selling pressure

• 17 Mar 2025
• 0

The week began with increased selling pressure as the bourse experienced a continuously red session with slight hints of volatility. The ASPI registered a 211 point drop, closing at 15,649. MELS, NDB, SAMP, DFCC and SPEN emerged as the top negative contributors to the index.

Both HNW and retail investors remained moderately active as increased crossings and trades were reported relative to the previous session. Banking sector counters were the primary contributors to today’s overall decline.

Turnover stood at LKR 1.3Bn, marking a 55.2% decrease from the monthly average of LKR 2.9Bn. The Capital Goods sector was the most significant contributor to the overall turnover with a 25% share, followed by the Banking, and Food, Beverage & Tobacco sectors jointly accounting for 39%. Foreign investors were net buyers, with a net inflow of LKR 28.0Mn.

Buying stance persists, yield curve dips

Building on the previous week's momentum, market participants chose to maintain a buying stance, pushing the secondary market yield curve down across the board by c.10-15bps.

This persisting buying stance led to increased trading activity and high volumes. 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, 15.03.2028 and 01.05.2028 maturities traded at the rate of 9.90%, whilst 01.09.2028, 01.10.2028, 15.06.2029 and 15.12.2029 bonds traded at the rates of 9.95%, 10.00%, 10.35% and 10.40%, respectively.

Meanwhile, 15.10.2030 maturity traded at the rate of 10.70% and 15.03.2031, 15.12.2032 and 15.05.2034 maturities traded at the rates of 11.00%, 11.15% and 11.34%, respectively.

On the external front, the LKR depreciated against the USD, closing at LKR 295.8/USD compared to LKR 295.4/USD recorded the previous day. Furthermore, CBSL holdings of government securities remained stagnant at LKR 2,511.9Bn and overnight liquidity of the Banking system contracted to LKR 181.7Bn from LKR 188.6Bn recorded the previous day.

Courtesy: First Capital Research

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