ASPI weathers volatility to close steady

• 21 Aug 2025
• 0

The Colombo Bourse witnessed a highly volatile trading session, underpinned by heightened investor activity as positive market sentiment continued to remain strong.

The ASPI closed broadly unchanged at 20,715, in line with the previous close. The index gained upward momentum during early trading hours but saw a sharp decline as selling pressure intensified.

A gradual recovery followed, supported by bargain buying, which helped the index stabilize by the end of the session. Positive contributors to the index marginally outweighed negative ones, with DIAL, SUN, RCL, COOP and GREG leading the way.

Retail and HNW investors remained notably active, pushing daily turnover to LKR 10.5Bn which marks a 69% increase compared to the monthly average of around LKR 6.2Bn.

The Banking sector dominated turnover, contributing 31%, followed by the Consumer Services sector at 17% and the Food, Beverage, and Tobacco sector at 16%.  Foreign investors remained net sellers with a net outflow of LKR 552.6Mn.

BOND MARKET

Yield curve holds steady amid moderate secondary market activity

 The secondary market witnessed moderate trading activity today, with volumes remaining limited. Amid the subdued participation, the overall yield curve showed little movement.

At the shorter end, bonds maturing on 15.02.2028 and 15.03.2028 traded within the 8.80% to 8.83% range, while 01.05.2028 and 01.07.2028 maturities saw yields between 8.84% and 8.90%. In the 2029 segment, the 15.06.2029 maturity traded at 9.35%, and the 15.12.2029 bond ranged from 9.45% to 9.48%. Further along the curve, 15.03.2031 traded between 9.95% and 10.25%.

Finally, the 15.12.2032 maturity closed at 10.31%. In the forex market, the LKR depreciated against the greenback, closing at LKR 301.8/USD, compared to the previously seen rate of LKR 301.5/USD. Meanwhile, overnight liquidity in the banking system expanded to LKR 106.1Bn from the previously seen level of LKR 105.9Bn.

Courtesy: First Capital Research

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