Market starts the week with a gain

• 24 Mar 2025
• 0

The market picked up today as the ASPI gained 33 points, closing at 15,913 with a turnover of LKR 1.9Bn. This increase in turnover suggests stronger market sentiment, with crossings indicating significant contributions from HNW investors.

While the first half of the day saw a relatively stable market with less volatility, the second half witnessed some selling pressure, possibly due to profit-taking or cautious sentiment from investors.

The positive contributors for the day included CTHR, HNB, SBD, TJL, PKME which helped to sustain the market's upward momentum, and the negative contributors included BUKI, MELS, JKH, NDB, VONE.

The Banking sector was the main contributor to the overall turnover with 44% share, followed by the Capital goods and Materials sector jointly accounting for 30%. Foreign investors remained net sellers, with a net outflow of LKR 12.7Mn.

Mixed activity emerges ahead of the monetary policy review

As the week began, the secondary market experienced mixed interest. Market activity and transaction volumes remained at moderate levels, with mixed activity observed particularly on tenors for 2028 maturities.

However, buying interest emerged at the short end of the curve, supported by elevated overnight market liquidity compared to the previous weekend, closing at LKR 184.1Bn.

Accordingly, at the short end of the curve, 01.05.27 and 15.09.27 maturities traded within the range of 9.28% to 9.03%. 2028 maturities, namely 01.05.2028, 01.07.2028, 01.09.2028, and 15.10.2028, traded within the range of 9.86% to 9.65%.

Further along the belly end of the curve, 15.09.2029, 15.12.2029, and 15.05.2030 bonds were traded at rates ranging from 10.16% to 10.00%, while the 01.10.2032 maturity traded at 10.50%.

Furthermore, pivoting from the declining trend of the AWPR, the week ended 21st Mar-25 saw the AWPR close at 8.44%, up by 7bps compared to the previous week. Additionally, the LKR remained broadly stable at LKR 296.56/USD, compared to 296.60/USD recorded on the previous day.

Courtesy: First Capital Research

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