Reversing the positive sentiment observed in the previous week, the Colombo Stock Market succumbed to prolonged selling pressure as investors expressed profit taking sentiment.
Despite some early buying interest during the initial trading hours, the ASPI witnessed a sustained downtrend that continued until the close. Banking sector stocks, including COMB and DFCC along with conglomerates such as CINS, CARS and MELS contributed significantly to the negative movement of the index.
Accordingly, the index closed in red at 20,649 losing 66 points. Investor activity remained subdued, with limited participation from both retail and high-net-worth individuals.
Today's Turnover amounted to LKR 5.1Bn, which marks a 21% decrease from the monthly average of around LKR 6.4Bn. The Capital Goods sector dominated turnover, contributing 24%, followed by the Banking and the Diversified Financials sector with a combined contribution of 36%. Foreign investors turned net buyers, recording a net inflow of LKR 30.9Mn.
Lethargic sentiment keeps yield curve flat
Building on the lethargic sentiment from yesterday, the secondary market saw subdued activity and low trading volumes, resulting in the yield curve remaining unchanged.
Amongst the traded maturities, at the shorter end of the curve, bonds maturing on 15.02.2028 traded at the rate of 8.80% and 15.06.2029 maturity traded at the rate of 9.33%.
Meanwhile, 15.10.2029 bond maturity changed hands at the rate of 9.44%. In the 2031 segment, the 01.12.2031 maturity traded at 10.00%, and the 01.07.2032 bond traded at 10.44%.
Further along the curve, 15.09.2034 traded at the rate of 10.85%. In the forex market, the LKR remained stable against the greenback, closing at LKR 301.83/USD, unchanged from the previous rate. Meanwhile, overnight liquidity in the banking system expanded to LKR 116.4Bn from the previously seen level of LKR 106.1Bn.
Courtesy: First Capital Research
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