Today, the Colombo Bourse remained largely flat amid reduced investor participation, influenced by mixed sentiment surrounding uncertainties over the unresolved US–Iran peace talks.

The ASPI marginally increased by 14 points to close at 22,640, surrendering gains recorded during early trading hours, while the S&P SL20 declined by 9 points to settle at 6,214. CINS, CFIN, JINS, ACL, and MELS were the top positive contributors to the ASPI.

Overall market sentiment remained subdued, with heightened participation from HNW investors, while retail activity stayed relatively muted. Daily turnover amounted to LKR 5.3Bn, representing a 40.5% increase compared to the monthly average of LKR 3.7Bn.

AAIC led the total turnover with LKR 1.5Bn (28.3%), supported by a significant crossing of LKR 1.3Bn. The Insurance sector accounted for the largest share of turnover at 34%, followed by the Food, Beverage and Tobacco and Banking sectors, which collectively contributed 32%. Foreign investors continued to be net sellers, recording a net outflow of LKR 2.5Bn.

BOND MARKET

Muted trading persists in the secondary market

The secondary market continued to remain tepid with limited trading activity and low volumes during today’s session. Over the 2028 segment, 01.07.2028 and 15.12.2028 maturities traded at 9.67% and 9.90% respectively, while 15.09.2029 and 15.12.2029 bonds were traded at 9.93% and 10.00% respectively.

At the T-bill auction, the PDMO raised LKR 110.0Bn equivalent to the initial offer. 3M, 6M and 12M maturities were accepted in full, amounting to LKR 45.0Bn, LKR 35.0Bn and LKR 30.0Bn respectively. Weighted average yields of 3M and 6M maturities edged up to 8.27% (+12bps) and 8.23% (+1bp) respectively, while it stood steady at 8.52% for 12M maturity.

On the external front, the LKR slightly depreciated against the USD, standing at LKR 316.46/USD, compared to LKR 316.44/USD seen yesterday. Liquidity in the banking system expanded to LKR 151.01Bn from LKR 123.32Bn recorded previously.

-First Capital Research-