As US President Donald Trump dismissed Iran’s response to US proposals aimed at ending the war, renewed tensions in the Middle East weighed negatively on the Colombo Bourse alongside rising global oil prices.

The ASPI declined by 52 points during today’s session, reversing the early gains recorded at the opening and ultimately closing at 23,012, while the S&P SL20 fell by 19 points to settle at 6,300.

CINS, JKH, COMB, DFCC and DOCK emerged as the top negative contributors to turnover. Participation from HNW investors remained elevated, with crossings accounting for 61.6% of the total turnover, supported by a crossing valued at LKR 2.8Bn in SEYB, which represented 91.2% of total crossings

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Retail investor participation was observed at average levels. Daily turnover stood at LKR 4.9Bn, marking an increase of 26.7% over the monthly average of LKR 3.9Bn. Banking sector led the daily turnover with a share of 62%, followed by the Diversified Financials and Materials sectors collectively contributing 14%. Foreign investors remained net buyers, posting a net inflow of LKR 597.5Mn.

BOND MARKET

Muted market ahead of the T-Bond auction

Ahead of the T-Bond auction to be held by the PDMO tomorrow, the secondary market saw sluggish movement during the day. The yield curve broadly stood stable across the maturities. 

Among the trades which took place, the short tenor 15.02.2028, 15.10.2028, and 15.12.2028 bonds traded at 9.60%, 9.77%, and 9.80%, respectively. Moving ahead, 15.06.2029 was dealt at 9.85%, while both 15.09.2029 and 15.10.2029 changed hands at 9.90%.

Moreover, both 01.03.2030 and 15.05.2030 were traded at 10.10% and 15.06.2034 maturity was quoted at 11.20%. On the external front, the LKR depreciated against the USD, standing at LKR 321.87/USD, compared to LKR 321.63/USD seen previously. Overnight liquidity in the banking system expanded to LKR 262.96Bn from LKR 253.66Bn recorded previously.

-First Capital Research-