The Colombo Bourse witnessed subdued investor participation, resulting in muted trading volumes, as the market collectively reacted to yesterday’s policy rate hike by the Central Bank.

Despite the cautious sentiment, early buying interest pushed the ASPI higher during the first half of the session. However, some profit-taking emerged towards the close, which trimmed part of the gains, although the index still ended 24 points higher at 22,199.

Meanwhile, the S&P SL20 closed at 6,131, posting a modest gain of 13 points. DIAL, CCS, BREW, CARS and NDB were among the top positive contributors to the index. Both retail and HNW investor activity remained below average, resulting in a turnover of LKR 1.9Bn, marking a decrease of 46.9% over the monthly average of LKR 3.5Bn.

The Food, Beverage & Tobacco sector was the topmost contributor to turnover, accounting for 19% of the total, followed by the Materials, and Capital Goods sectors, with a joint contribution of 30%. Foreign investors turned net buyers, posting a net inflow of LKR 0.7Mn.

BOND MARKET

PDMO successfully raises the full offered amount at the T-Bond auction

Today, the PDMO successfully concluded a T-Bond auction, raising the full offered amount of LKR 240.0Bn across the 2030, 2033, and 2035 maturities.

However, overall market volumes remained subdued, with trading activity easing during the day. At the T-Bond auction held today, the PDMO successfully raised the full offered amounts of LKR 90.0Bn, LKR 70.0Bn, and LKR 80.0Bn for the 2030, 2033, and 2035 maturities, respectively, raising a total of LKR 240.0Bn.

The corresponding weighted average yields were 11.86%, 12.32%, and 12.93%. Following the bond auction, the 01.08.2030 maturity traded in the range of 12.00%-12.10%. The 15.01.2033 maturity was seen trading at 12.50%, while the 15.03.2035 maturity traded between 13.15% and 13.00%.

On the external front, the LKR appreciated against the USD, standing at LKR 323.02/USD, compared to LKR 325.11/USD seen yesterday. Overnight liquidity in the banking system contracted to LKR 126.70Bn from LKR 142.31Bn recorded previously.

First Capital Research