The Colombo bourse closed in negative territory as the ASPI shed 46 points to 22,265 and the S&P SL20 eased 9 points to 6,150, with sentiment continuing to bear the weight of the recent CBSL rate hike, keeping investor confidence subdued.

Both HNW and retail participation remained thin. JKH, RICH, and LOLC were the top negative contributors to the ASPI for the day. Daily turnover stood at LKR 1.7Bn, marking a decrease of 54.1% over the monthly average of LKR 3.6Bn.

Capital Goods sector led the daily turnover with a share of 17%, followed by the Banking, and Food Beverage & Tobacco sectors collectively contributing 32%.

Overall market volume decreased by 86.2% to 71.0Mn. Foreign investors remained net sellers, posting a net outflow of LKR 7.8Mn.

BOND MARKET

Selling pressure moves yields higher in the secondary market

The secondary market witnessed some selling pressure amidst moderate volumes and limited market activity during today’s session.

The yield curve adjusted up, especially driven by medium to long term yields. Among the traded maturities, 01.08.2030 traded between 11.90% to 12.10%. Moving ahead, 15.01.2033 and 01.06.2033 changed hands at 12.30% and 12.75% respectively.

Moreover, 15.03.2035 was traded within the range of 12.95% and 13.05%. On the external front, the LKR depreciated against the USD, standing at LKR 329.22/USD, compared to LKR 327.82/USD seen earlier.

Overnight liquidity in the banking system expanded to LKR 102.46Bn from LKR 92.15Bn recorded previously.

-First Capital Research-