CSE extends bull run as investor confidence stays strong

• 23 Jul 2025
• 0

The Colombo Stock Exchange carried on the bullish sentiment with strong participation from both retail and HNW investors, highlighting that the Central Bank’s decision to hold the overnight policy rate unchanged was well received.

The ASPI ended the session on a positive note, closing at 19,243 with a gain of 151 points. The index surged at the open and registered steady and continued gains throughout the session.

DFCC, RICH, NDB, CARS and NTB emerged as the top positive contributors to the index. Turnover for the day stood at LKR 6.2Bn, which reflects a 12% decrease over the monthly average of LKR 7.1Bn. 

The Banking sector dominated the turnover with a 22% share whilst the Capital Goods and Food, Beverage and Tobacco sectors jointly contributed around 36%. Foreign investors remained net sellers with a net outflow of LKR 99.6Mn.

CBSL holds policy rate steady; modest uptick in secondary market activity

The Central Bank of Sri Lanka, at its meeting held on 22nd July 2025, decided to maintain the Overnight Policy Rate (OPR) at the current level of 7.75%. The CBSL has indicated that the current monetary policy stance will help steer inflation towards the target of 5% in the period ahead while supporting growth.

The secondary bond market experienced a modest uptick in trading activity compared to the past few sessions this week, though overall volumes remained subdued. At the shorter end of the yield curve, the 15.09.2027 maturity traded at 8.55%, the 01.07.2028 at 8.95%, the 15.10.2028 at 9.03%, and the 15.12.2028 maturity saw trades at 9.05%,

Further along the curve, 15.10.2029 changed hands at 9.47%. The Central Bank concluded its weekly Treasury Bill auction today, raising LKR 19.9Bn, well below the initially offered LKR 111.0Bn.

The 3M bill generated LKR 1.2Bn, with its weighted average yield remaining unchanged at 7.62%. The 6M bill raised LKR 9.4Bn, with yield remaining unchanged at 7.91%. Meanwhile, the 12M bill drew LKR 9.2Bn, with its yield marginally decreasing by 1bp to 8.03%. I

n the forex market, the LKR appreciated against the greenback, closing at LKR 301.7/USD, compared to the previously seen rate of LKR 301.8/USD. Meanwhile, overnight liquidity in the banking system contracted to LKR 93.5Bn from the previously seen level of LKR 98.4Bn.

Courtesy: First Capital Research

YOU MAY ALSO LIKE