Construction sector gauges investor interest

• 02 Oct 2025
• 0

Backed by the strong kick start for the month from previous day, Colombo Stock Exchange continued its positive momentum and ended up on the green territory.

ASPI was up by 100 points and ended the day at 21,952, marking the 13th consecutive day of gains. Although the retail participation was moderate, HNW participation was high, with more positivity observed largely towards Banking sector and the blue-chip companies.

Additionally, there was positive investor participation towards the Construction sector counters. This could have possibly been driven by the rise of PMI index to 61.1 in August, from 60.0 in July.

MELS, AEL, UBC, RCL and NDB were the top positive contributors to the index. Turnover for the day stood at LKR 6.5Bn, reflecting a decrease of 8% compared to the monthly average that stands at around LKR 7.1Bn.

Banking sector took the lead in terms of sector wise contributions to turnover, with a share of 24%, followed by the Capital Goods sector and Food, Beverage & Tobacco sector which produced a combined contribution of 36%.  Foreign investors remained net buyers, recording a net inflow of LKR 46.4Mn.

Muted market participation with selective interest at short and long ends

The secondary government securities market remained subdued today, with limited trading activity and low volumes, with some selling pressure observed at the short end of the yield curve.

Within the short-term segment, 15.09.2027 was quoted at a yield of 8.85%. In the 2028 segment, both the 15.10.2028 and 15.12.2028 maturities were transacted at a yield of 9.25%. Progressing to the 2029 segment, 15.06.2029, 15.09.2029, 15.10.2029, and 15.12.2029 were traded within a yield range of 9.60% to 9.81%.

The 01.07.2030 maturity was also traded, closing at a yield of 9.76%. At the longer end of the curve, selective buying interest emerged in the 15.09.2034 security, which was traded at a yield of 10.80%.

On the external front, the LKR appreciated slightly against the USD, closing at LKR 302.52/USD, compared to LKR 302.62/USD recorded the previous day. Overnight liquidity in the banking system expanded to LKR 172.2Bn from LKR 169.0Bn recorded the previous day.

Courtesy: First Capital Research

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