The Colombo Bourse extended its positive momentum as the national budget was presented today, with the ASPI surging 226 points to close at 23,338. Investor focus was largely directed towards Banking sector counters, while retail participation remained robust and HNW activity continued at a moderate level.
Key positive contributors to the index included SFCL, COMB, SAMP, HNB, and VONE. Market turnover stood at LKR 6.7Bn, reflecting a 7% decline from the monthly average of LKR 7.2Bn.
The Banking sector led market activity, accounting for 23% of total turnover, followed by the Capital Goods and Food, Beverage & Tobacco sectors, which collectively contributed 32%. Meanwhile, foreign investors remained net sellers, posting a net outflow of LKR 91.5Mn for the day.
BOND MARKET
Momentum moves the market, powered by buying interest
The secondary market continued its momentum from the previous session, with investors demonstrating sustained buying sentiment. Volumes held steady at reasonable levels, while the yield curve edged downward towards the mid-to-long range.
Among the trades that took place today, activity was mainly concentrated towards the short to mid segment of the curve. Within the 2028 segment, the 15.03.2028, 01.07.2028 and 15.10.2028 maturities traded within a yield band of 9.00% to 9.10%.
Moving along, the 15.06.2029, 15.09.2029 and 15.10.2029 maturities traded within the 9.37% to 9.48% range. Moving further on to the mid-segment, the 15.07.2030 bond traded within 9.70% to 9.63%, followed by the 15.03.2031 bond which changed hands at 9.90%.
On the external front, the LKR depreciated against the USD, closing at LKR 304.95/USD compared to LKR 304.62/USD seen previously. Overnight liquidity in the banking system contracted to LKR 118.3Bn from LKR 125.9Bn recorded on the previous day.
Courtesy: First Capital Research
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