Retail investors drive strong rally to start the week

• 18 Aug 2025
• 0

The Colombo Stock Exchange experienced a day of increased investor activity and positive sentiment with the ASPI maintaining steady upward strides and closing at 20,471.

This depicts a 1.25% increase marked by 252 points.  The index experienced steadfast gains and withheld its positive trajectory throughout the trading session.

The top positive contributors for the day were COMB, CARS, MELS, JKH and DFCC. Today's rally was predominantly driven by retail investors, closely followed by significant participation from HNW investors, following the release of quarterly earnings that reflected solid gains.

Turnover for the day amounted to LKR 7.7Bn, marking a 21% increase from the monthly average of around LKR 6.4Bn. The banking sector dominated turnover, contributing 28%, followed by the Diversified Financials and Capital Goods sectors with a combined contribution of 34%. Foreign investors remained net sellers with a net outflow of LKR 13.7Mn.

BOND MARKET

Yield curve holds steady amid mixed sentiment

The week opened with mixed sentiment in the secondary bond market. Modest selling interest emerged in the 2028 and 2029 maturities, while the longer end, particularly the 2032s and 2033s, attracted selective buying.

Despite the contrasting tone across segments, the yield curve held broadly steady. At the short end of the curve, 15.02.2028, 15.03.2028 and 01.05.2028 traded between 8.75% to 8.80%.

Amongst the 2029 maturities that were traded 15.06.2029 changed hands at 9.30% while 15.09.2029, 15.10.2029 and 15.12.2029 traded between 9.40% to 9.45%.

Moving ahead, 01.07.2032 maturity traded between 10.35% to 10.43% and finally, 01.06.2033 was seen trading at 10.60%. In the forex market, the LKR depreciated against the greenback, closing at LKR 301.2/USD, compared to the previously seen rate of LKR 301.0/USD.

Meanwhile, overnight liquidity in the banking system expanded to LKR 135.9Bn from the previously seen level of LKR 88.3Bn.

Courtesy: First Capital Research

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