Market at a standstill, closing marginally up in the green

• 19 Mar 2025
• 0

The market remained at a standstill today, with the ASPI gaining 27 points to close at 15,406. Turnover reached LKR 1.3Bn, reflecting a relatively low level of market activity.

Crossings were lower than yesterday, indicating reduced participation from both retail and HNW investors despite the market's positive movement.

The first half saw the ASPI surpassing 15,500, and 100 points higher, but this was followed by a dip in the midday session as profit-taking led to a sell-off, limiting gains to a 27-point increase by the close.

The positive contributors for the day were COMB, HNB, MELS, NDB, and SAMP whilst the negative contributors include LOLC, BIL, HHL, JKH, and CCS.

Capital goods sector was the most significant contributor to the overall turnover with a 35% share, followed by the Banking, and Food, Beverage & Tobacco sectors jointly accounting for 36%. Foreign investors turned into net buyers, with a net inflow of LKR 14.2Mn.

Yield curve subtly dips from short to mid end

In today’s weekly T-Bill auction, the weighted average yield rates experienced a further decline across the board. The weighted average yield rates for the 3M, 6M, and 12M T-Bills stood at 7.50%, 7.84%, and 8.25%, respectively, reflecting auction yield drops of 2bps, 2bps, and 9bps.

Furthermore, CBSL offered a total of LKR 143.0Bn worth of T-Bills collectively, and this amount was fully subscribed. At today’s secondary market, market participants continued to maintain the persistent buying stance from recent days, causing the secondary market yield curve to taper down further from the short to mid end.

Investor interest was predominantly focused on 2028, 2029, 2031 and 2033 bond maturities. At the mid-end 15.02.2028 and 15.03.2028 maturities traded at the rate of 9.70%, whilst 15.05.2028, 15.07.2028, 15.10.2028 and 15.12.2028 maturities traded at the rates of 9.80%, 9.85%, 9.90% and 10.03%, respectively.

Meanwhile, 2029 bond maturities namely, 15.06.2029 traded at the rate of 10.10% whilst both 15.09.2029 and 15.12.2029 maturities traded in the range of 10.15%. Meanwhile, 01.12.2031 and 01.06.2033 traded at the rates of 10.65% and 11.05%, respectively.

On the external front, the LKR appreciated further against the USD, closing at LKR 296.0/USD compared to LKR 296.3/USD registered the previous day. CBSL holdings of government securities remained stagnant at LKR 2,511.9Bn. Overnight liquidity of the Banking system contracted to LKR 172.1Bn from LKR 194.2Bn seen in the previous day.

Courtesy: First Capital Research

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