Similar to the previous day, the Colombo Stock Market continued its upward trend, fueled by heightened investor optimism following strong quarterly earnings.
The Banking sector counters and selected Diversified Financial sector stocks played a key role in driving the index into positive territory. As a result, the ASPI closed at 20,571, marking a gain of 101 points.
Notable contributors to this positive movement included COMB, HNB, CARS, SAMP, and BUKI. On the back of increased participation from both retail and HNW investors, turnover for the day amounted to LKR 10.9Bn, marking an 86% increase from the monthly average of around LKR 5.8Bn.
The Banking sector dominated turnover, contributing 42%, followed by the Diversified Financials and Food, Beverage and Tobacco sectors with a combined contribution of 21%. Foreign investors remained net sellers with a net outflow of LKR 2.2Bn.
BOND MARKET
Activity remains limited, yield curve stays put
The secondary market withstood yet another day of measured caution amid limited investor activity, which in turn prompted the yield curve to remain largely static.
At the short end of the curve, 15.02.2028, 01.05.2028 and 15.10.2028 traded at 8.75%, 8.80% and 8.90% respectively. Moving ahead, 15.09.2029 and 15.12.2029 trade between 9.40% to 9.43% while 15.05.2030 was seen changing hands at 9.50%.
Additionally, 15.03.2031 traded at 9.88% while 15.12.2032 traded between the narrow range of 10.25% to 10.26%. Some activity was also visible at the belly end of the curve with 01.06.2033 trading between 10.60% to 10.61% and 15.09.2034 changing hands at 10.75%. In the forex market, the LKR depreciated against the greenback, closing at LKR 301.19/USD, compared to the previously seen rate of LKR 301.15/USD.
Meanwhile, overnight liquidity in the banking system contracted to LKR 116.0Bn from the previously seen level of LKR 135.9Bn.
Courtesy: First Capital Research
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