The Colombo Bourse responded positively to the progress in ongoing peace talks, which led to a moderation in global oil prices and continued to support favourable market behaviour.

The ASPI maintained steady ground within the green zone despite early volatility, and closed at 22,625, registering a gain of 55 points. The top positive contributors to the index were CINS, BUKI, CFIN, MELS and NHL. The market was driven by retail participants, with trading stocks demonstrating high activity, while HNW activity remained at subdued levels. Daily turnover stood subdued at LKR 3.6Bn, marking a decrease of 4.9% over the monthly average of LKR 3.7Bn.

The Consumer Services sector led today’s turnover with a 29% share, followed by the Diversified Financials, and Capital Goods sectors, which collectively contributed 28%. After a sustained 21-day selling streak, foreign investors reversed course to emerge as net buyers, recording a net inflow of LKR 19.8Mn.

BOND MARKET

The secondary market concludes yet another muted session

The secondary market withstood another lackluster trading session characterized by thin volumes and mixed activity. Similar to yesterday, only the 2029 maturity attracted noteworthy activity, with 15.09.2029 and 15.10.2029 both trading between 9.95% to 10.00%. Persistent geopolitical uncertainty and plausible spillover effects on Sri Lanka appear to have pushed investors to embrace a wait and see approach, leaving trading activity largely muted.

On the external front, the LKR held largely steady against the USD, standing at LKR 316.44/USD, showing minimal change compared to yesterday. Liquidity in the banking system expanded to LKR 123.32Bn from LKR 112.44Bn recorded previously.

First Capital Research