Materials and construction counters drive market upswing

• 27 Aug 2025
• 0

Continuing the positive momentum from the previous session, the Colombo Bourse maintained its upward trajectory, supported by steady fund inflows.

Selected counters in the Construction and Materials sectors gained traction, driven by increased participation from both retail and HNW investors.

As a result, the ASPI closed at 20,753, recording a gain of 140 points. AEL, VONE, CTC, RCL, and CARG were among the top contributors to the index's performance.

Market turnover rose to LKR 7.4Bn, marking a 17% increase compared to the monthly average of LKR 6.3Bn, aided by several crossings.

The Diversified Financials sector led turnover contributions with a 20% share, while the Banking and Capital Goods sectors together accounted for 27% of the day's total turnover. Foreign investors turned net sellers with a net outflow of LKR 63.1Mn.

BOND MARKET

T-Bill auction defined by selective uptake

The secondary bond market withstood yet another day of limited activity prompting the yield curve to remain static.  At the short end of the curve 15.12.2026 traded at 8.18% while 15.03.2028 traded at 8.85%.

Moving ahead, 15.10.2029 and 15.12.2029 were seen changing hands between 9.43% to 9.50%. Finally, the 15.12.2032 maturity traded at a rate of 10.30%. Today, CBSL accepted LKR 51.1Bn at its weekly T-Bill auction, below the targeted LKR 82.0Bn, despite total bids reaching LKR 158.0Bn.

For the 3M tenor, LKR 4.6Bn was accepted from LKR 17.4Bn in bids, with the yield easing to 7.58%. The 6M bill saw LKR 36.5Bn accepted, exceeding the LKR 32.0Bn offer, as the weighted average yield held steady at 7.89%. In the 12M maturity, LKR 9.9Bn was accepted from LKR 63.7Bn in bids, with the yield unchanged at 8.03%.

The results highlight a cautious stance by the Central Bank, keeping yields broadly stable across all tenors. In the forex market, the LKR depreciated against the greenback, closing at LKR 302.3/USD compared to LKR 302.2/USD seen previously.  Meanwhile, overnight liquidity in the banking system contracted marginally to LKR 134.9Bn from the previously seen level of LKR 135.7Bn.

Courtesy: First Capital Research

YOU MAY ALSO LIKE