Amid rising global oil prices following the announcement of the UAE’s withdrawal from OPEC, coupled with prevailing global uncertainty, the market remained largely subdued during today’s session.

The ASPI recorded a marginal gain of 15 points to close at 22,635, supported by heightened participation in the newly listed JXG share. However, the market breadth continued to remain negative with 92 gainers against 135 decliners.

The S&P SL20 increased by 11 points to close at 6,241. CINS, JXG, BREW, DIAL and JKH emerged as the top positive contributors to the ASPI. Retail investor participation remained elevated, with notable interest in JXG and several small to mid-cap shares, while HNW participation was observed at average levels.

Daily turnover stood at LKR 4.2Bn, marking an increase of 19.6% over the monthly average of LKR 3.5Bn. Diversified Financials sector led the daily turnover with a share of 47%, followed by the Banking and Capital Goods sectors collectively contributing 20%. Foreign investors remained net sellers, posting a net outflow of LKR 332.5Mn.

BOND MARKET

Market activity remains muted, keeping yields stable

The secondary bond market recorded subdued trading activity today, leaving the overall yield curve largely unchanged. Among the maturities traded, the 15.12.2032 bond changed hands at 10.85%, while the 01.06.2033 maturity traded at 11.00%.

Further along the curve, 15.06.2034 maturity traded at 11.17%. Finally, the 01.07.2037 maturity was seen trading at 11.25%, with these tenors drawing selling interest. At the Treasury bill auction, the PDMO raised LKR 126.9Bn, falling short of the initial offer of LKR 140.0Bn. 3M, 6M, and 12M were accepted, totaling LKR 69.8Bn, LKR 25.3Bn, and LKR 31.9Bn, respectively.

The weighted average yield on the 3M bill declined to 8.20% from 8.27%, while the 6M yield edged up by 2 bps to 8.25%. The 12M yield remained unchanged at 8.52%. On the external front, the LKR depreciated against the USD, standing at LKR 318.69/USD, compared to LKR 317.92/USD seen yesterday. Liquidity in the banking system expanded to LKR 248.48Bn from LKR 231.90Bn recorded previously.

-First Capital Research-