The Colombo Bourse experienced a volatile day with an early rally, followed by a mid-day decline to a low and a steady recovery toward the close.
Ending the week ASPI closed at an all-time high of 23,732 with a gain of around 23 points. S&P SL20 index increased by 18 points to close the day at 6,560. Top positive contributors for the ASPI were COMB, DFCC, CTHR, NAMU and COOP.
Daily turnover was recorded at LKR 4.7Bn, representing an decrease of 1.7% above the monthly average level of LKR 4.8Bn. Both retail and HNW participants showed moderate investor sentiment while, HNW were mostly interested in Banking sector.
The Banking sector was the top most contributor to the turnover, with a share of 38%, followed by the Capital Goods sector and the Food Beverage & Tobacco sectors, which together contributed 25%. Foreign investors turned net buyers, posting a net inflow of LKR 65.3Mn.
BOND MARKET
Mixed sentiment prevails as long-term tenors attract buyers
The secondary bond market yield curve experienced heightened trading activity and elevated volumes, with sentiment remaining mixed.
However, buying interest was evident in longer-dated tenors, particularly the 2035 maturity, while the overall yield curve remained broadly stable.
Among the actively traded maturities, the 15.06.2029 and 15.09.2029 securities traded within a yield range of 9.70%-9.62%. The 15.05.2030 maturity traded at 9.79%, followed by the 15.03.2031 at 10.10% and the 01.07.2032 at 10.75%. The long-end 15.06.2035 maturity traded within a range of 11.25%-11.15%.
On the external front, the LKR depreciated against the USD, closing at LKR 309.3/USD compared to LKR 309.1/USD recorded the previous day. Overnight liquidity in the banking system contracted to LKR 160.19Bn from LKR 182.72Bn recorded previously.
Courtesy: First Capital Research
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