Amid ongoing tensions in the Middle East, the market declined during the early hours. However, in the evening session, the ASPI recovered its earlier losses and ultimately closed at 21,127, recording a marginal gain of 9 points.

The S&P SL20 closed in negative territory at 5,861 points, declining by 14 points. DFCC, CARG, AEL, JKH and AHPL emerged as the top positive contributors to the ASPI. Participation from retail and HNW investors was observed at lower levels.

Daily turnover stood at LKR 3.0Bn, representing a decrease of 29.8% compared to the monthly average of LKR 4.3Bn. Crossings accounted for 31% of the total turnover. MELS recorded crossings amounting to LKR 810Mn, which represented 86% of the total crossings.

The Food, Beverage & Tobacco sector led daily turnover with a 33% share, followed by the Capital Goods and Banking sectors, which collectively contributed 34%. Foreign investors remained net sellers, recording a net outflow of LKR 804.7Mn.

BOND MARKET

Modest buying interest pushes yield curve slightly lower

At the start of the week, the secondary market saw modest buying interest, accompanied by low volumes and activity, pushing the yield curve slightly lower. For the 2029 tenor, the 15.06.2029 and 15.09.2029 maturities traded in the range of 9.82% to 9.90%.

Further along the curve, the 01.03.2030 maturity traded at 9.95%, while the 01.06.2033 and 01.11.2033 maturities ranged between 11.00% and 11.05%. Meanwhile, PDMO announced a bond auction today, which is scheduled for 9th Apr-26, aiming to raise LKR 100.0Bn across three maturities.

On the external front, the LKR depreciated against the USD, closing at LKR 315.38/USD compared to LKR 315.21/USD recorded previously. Liquidity in the banking system contracted to LKR 231.84Bn from LKR 247.36Bn recorded previously.

-First Capital Research-