Today, the Colombo Bourse experienced a subdued trading session, with weakened investor confidence persisting from previous sessions and exerting downward pressure on both indices.

The ASPI declined by 75 points to close at 22,361, while the S&P SL20 edged down by 11 points to settle at 6,215. SAMP, HNB, RIL, JKH, and CINS were the leading negative contributors to the ASPI during the session. Investor participation from both HNW and retail segments remained relatively subdued.

Daily turnover stood at LKR 1.9Bn, marking a decrease of 35.6% over the monthly average of LKR 2.9Bn. Capital Goods sector led the daily turnover with a share of 24%, followed by the Banking, and Diversified Financials sectors collectively contributing 33%. Foreign investors remained net sellers, posting a net outflow of LKR 379.4Mn.

BOND MARKET

Mixed sentiment persists as yields decline across the board

The secondary market recorded strong activity and elevated trading volumes, with yields easing across the curve. Buying interest emerged in the early hours of trading, while slight selling interest was observed in the latter half of the session.

Investor interest was concentrated in the belly and long end of the yield curve, where the majority of trading activity was observed. Participation from primary dealers and banks remained active throughout the session.

Among the maturities traded, the 15.02.2028 maturity traded at 10.60%. In the 2029 segment, the 15.09.2029, 15.10.2029, and 15.12.2029 maturities traded between the rates of 10.95% to 10.85%.

Meanwhile, the 01.03.2030, 15.05.2030, and 01.08.2030 maturities traded between the rates of 11.20% to 10.95%, while the 15.03.2031 maturity traded at 11.30%. Further along the curve, the 15.12.2032 maturity changed hands between the rates of 11.55% to 11.45%.

Within the 2033 segment, the 15.01.2033 and 01.11.2033 maturities traded between the rates of 11.65% to 11.50%. In the long end, the 15.06.2034 maturity traded between the rates of 11.73% to 11.60%, whilst the 15.03.2035 maturity changed hands between the rates of 11.82% to 11.73%.

Popular maturities traded during the day

▪️15.12.2029: (-5bps)

▪️01.08.2030: (-5bps)

▪️01.11.2033: (-10bps)

▪️15.03.2035: (-5bps)

On the external front, the LKR depreciated against the USD, standing at LKR 334.28/USD, compared to LKR 333.98/USD seen earlier. Liquidity in the banking system remained broadly unchanged at LKR 31.25Bn from LKR 31.20Bn recorded previously.

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First Capital Research-