The Colombo Stock Exchange witnessed a volatile day of trading, however, overall market sentiment remained positive, extending the upward streak from yesterday.
The ASPI registered a new all-time high and closed at 20,800 marking a gain of 47 points. DIAL, GREG, BUKI, CARS and LOLC emerged as the main positive drivers of the index.
Both retail and HNW investors demonstrated reasonably high levels of activity, with a spotlight on small to medium cap companies such as EBCR, LVEF and SIRA.
Market turnover reached LKR 7.5Bn, representing a 16% increase compared to the monthly average of LKR 6.4Bn. The Capital Goods sector led turnover contributions with a 23% share, while the Diversified Financials, and Materials sectors stood next in line, with a collective contribution of 25%. Foreign investors remained net sellers, recording a net outflow of LKR 139.5Mn.
Selling pressure on the belly lifts yield curve marginally
Reversing yesterday's subdued tone, the secondary market yield curve experienced selling pressure at the belly of the curve, leading to moderate activity and light volumes.
As a result, the yield curve saw a modest uptick in the belly end of the curve. Amongst the traded maturities, the 15.02.2028 and 15.12.2028 maturities traded at the rates of 8.80% and 9.00%, respectively, while the 15.09.2029, 15.10.2029, and 15.12.2029 bond maturities traded at 9.45%.
Further along the curve, the 15.12.2032 maturity changed hands at a rate of 10.30%. In the forex market, the LKR depreciated marginally against the greenback, closing at LKR 302.33/USD compared to LKR 302.30/USD seen previously.
Meanwhile, overnight liquidity in the banking system expanded to LKR 143.2Bn from the previously seen level of LKR 134.9Bn.
Courtesy: First Capital Research
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