The Colombo Bourse closed in negative territory today, with the ASPI declining by 167 points to 22,011 and the S&P SL20 falling by 33 points to 6,098.

Investor sentiment remained subdued as the selling pressure witnessed in the previous session continued, while the rise in global oil prices further weighed on market confidence.

Both HNW and retail participation remained average during the session. The negative contributors to the ASPI were DIAL, SAMP, BREW, CCS and DOCK.

Daily turnover stood at LKR 2.1Bn, marking a decrease of 40.9% compared to the monthly average of LKR 3.5Bn. Consumer Durables & Apparel sector led the daily turnover with a share of 20%, followed by the Capital Goods, and Banking sectors collectively contributing 32%. Foreign investors turned into net sellers, posting a net outflow of LKR 410.3Mn.

BOND MARKET

T-Bill yields edge up across the board

Secondary market activity remained subdued, evident through limited volumes and low levels of activity. Weighted average yields edged upward across all tenors at today’s T-Bill auction, resulting in an upward adjustment across the yield curve.

At the short end of the yield curve, the 01.05.2028 and 01.07.2028 maturities traded from 11.60% to 11.75%. Moving on to 2029 bonds, the 15.10.2029 and 15.12.2029 maturities traded between 12.05% to 12.10%.

At the belly end, the 01.07.2030 and 01.08.2030 maturities attracted some activity, trading at 12.15%. Moving further along, the 01.06.2034 and 15.03.2035, both traded at 13.15%. At today’s T-bill auction, PDMO raised only a portion, totaling to LKR 111.2Bn, compared to the initial offer of LKR 140.0Bn.

The 3M bill raised LKR 55.2Bn, falling short of its offer of LKR 65.0Bn, while 6M and 12M maturities raised LKR 46.3Bn and LKR 9.6Bn, compared to the offered amounts of LKR 55.0Bn and LKR 20.0Bn respectively.

Weighted average yields edged up across the board, with the 3M yield edging up 48bps to settle at 9.84%, the 6M yield edging up 33bps to 10.01%, and the 12M bill edging up 19bps to 10.02%.

On the external front, the LKR depreciated against the USD, standing at LKR 332.16/USD, compared to LKR 331.58/USD seen earlier. Liquidity in the banking system expanded to LKR 111.71Bn from LKR 103.56Bn recorded previously.

-First Capital Research-