The Colombo Bourse concluded the session in positive territory, but ended almost flat, erasing the uptick observed during the early hours of trading.

Opportunities for bargain purchases drove the early gains. However, LKR depreciation and the overall macroeconomic uncertainty surrounding the Sri Lankan economy eroded early gains, resulting in a stagnant close to the session.

The ASPI marginally edged up by 45 points to settle at 21,834, while the S&P SL20 concluded the session at 6,039 following a 5-point modest gain. MELS, DOCK, ACL, PLC and CCS emerged as the top positive contributors to the ASPI.

Participation levels from both HNW and retail investors remained low, reflecting an overall subdued market sentiment. Daily turnover stood at LKR 2.2Bn, marking a decrease of 40.5% over the monthly average of LKR 3.6Bn.

Banking sector led the daily turnover with a share of 28%, followed by the Capital Goods, and Diversified Financials sectors collectively contributing 30%. Foreign investors remained net buyers, posting a net inflow of LKR 1.5Mn.

BOND MARKET

Yields edge up across the curve as selling continues

The secondary bond market carried forward the selling streak, resulting in an upward shift in yields across the curve. Market activity remained moderate, with trading volumes holding steady at similar levels.

Amongst the trades executed today, within the 2028 segment, maturities dated 01.05.2028, 01.07.2028 and 15.10.2028, traded within the range of 10.40% to 10.55%. Within the 2029 segment, the 15.10.2029 and 15.12.2029 maturities traded at 10.50%.

The 01.03.2030 bond traded at around 10.55%, followed by the 01.07.2030 bond at 10.80%. Moving further along the curve, the 01.10.2032 and 15.12.2032 maturities traded between 11.45% to 11.48%. Lastly, the 01.06.2033 bond changed hands between 11.50% to 11.60%. 

On the external front, the LKR depreciated against the USD, standing at LKR 329.64/USD, compared to LKR 328.20/USD seen previously. Overnight liquidity in the banking system contracted to LKR 158.93Bn from LKR 168.33Bn recorded previously.

-First Capital Research-