Optimism surrounding peace talks between the US and Iran, together with the commencement of a ceasefire between Israel and Lebanon, positively influenced market sentiment, leading the ASPI to record a sharp uptick at the start of the session before remaining largely stagnant for the rest of the day and closing 184 points higher at 22,773.

The S&P SL20 edged up by 33 points to close at 6,264. CINS, CFIN, HHL, JKH, and HAYL emerged as the top positive contributors to the ASPI. HNW investor participation observed at elevated levels and retail investor activity remained at average levels.

Daily turnover stood at LKR 5.0Bn, marking an increase of 23.6% over the monthly average of LKR 4.0Bn. Capital Goods sector led the daily turnover with a share of 21%, followed by the Diversified Financials, and Banking sectors collectively contributing 27%. Foreign investors remained net sellers, posting a net outflow of LKR 196.5Mn.

BOND MARKET

Limited activity defines a quiet trading session

The secondary bond market closed the week on a subdued footing, with the lingering effects of the long weekend continuing to weigh on activity. Trading volumes remained constrained, while the yield curve held broadly steady, reflecting the prevailing holiday-induced lethargy.

Among the limited trades observed, 2029 maturity drew selective investor interest, with 15.06.2029 trading at 9.90% while 15.09.2029 changed hands between the narrow range of 9.95% to 9.98%.

Further ahead on the yield curve 01.07.2030 traded at 10.15% and 01.11.2033 was seen trading at 11.00%. On the external front, the LKR slightly depreciated against the USD, standing at LKR 315.72/USD compared to LKR 315.55/USD seen earlier. Liquidity in the banking system contracted marginally to LKR 106.32Bn from LKR 107.38Bn recorded previously.

-First Capital Research-