The Colombo Bourse recorded an early advance, supported by easing geopolitical tensions and declining oil prices, thereby extending the positive momentum from the previous session.

However, during the latter part of the session, market indices came under pressure as investors engaged in profit-booking, resulting in a flat close to the session.

The ASPI edged down by 3 points to close at 22,377, while the S&P SL20 gained 2 points to settle at 6,221. CARG, CINS, SAMP, NDB, and CFIN were the top negative contributors to the ASPI.

Investor participation from both HNW and retail investors remained at average level throughout the session.

Daily turnover stood at LKR 3.9Bn, marking an increase of 34.0% over the monthly average of LKR 2.9Bn. Materials sector led the daily turnover with a share of 40%, followed by the Capital Goods, and Banking sectors collectively contributing 20%. Foreign investors remained net buyers, posting a net inflow of LKR 427.1Mn.

BOND MARKET

Buying momentum persists as geopolitical risks recede

Amid continued improvement in the geopolitical backdrop, investor sentiment remained firmly supported. The buying momentum from yesterday persisted into today’s session, albeit at a more measured pace, prompting a modest downward adjustment in the yield curve.

At the short end of the curve, 15.02.2028 traded between 10.90% to 10.85%. In the 2030 segment, 01.03.2030, 15.05.2030 and 01.08.2030 were seen trading between 11.30% to 11.50%.

Further along the curve 15.01.2033 traded between 11.92% to 11.62%. Finally, 15.06.2034 changed hands between 11.85% to 11.75%.

On the external front, the LKR strengthened against the USD, standing at LKR 331.59/USD, compared to LKR 336.19/USD seen earlier. Liquidity in the banking expanded marginally to LKR 40.07Bn from LKR 39.36Bn recorded previously.

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First Capital Research-