The Colombo Bourse closed in negative territory today, with the ASPI declining by 43 points to close at 22,179, while the S&P SL20 fell by 10 points to end at 6,194.

Investor sentiment remained subdued, reflecting the cautious tone observed throughout the week, with limited retail participation.

Turnover was primarily supported by high-net-worth investor activity, while foreign investors also remained active in the market.

The main negative contributors to the ASPI were CINS, JKH, RCL, SAMP, and CFLB. Daily turnover stood at LKR 1.5Bn, marking a decrease of 29.8% over the monthly average of LKR 2.2Bn.

Banking sector led the daily turnover with a share of 41%, followed by the Capital Goods, and Food Beverage & Tobacco sectors collectively contributing 38%. Foreign investors remained net sellers, posting a net outflow of LKR 157.9Mn.

BOND MARKET

Secondary market eases after previous rally

The secondary bond market lost some of the strong momentum witnessed in the previous session, with overall trading activity moderating as market volumes remained subdued.

Activity at the short end of the curve was minimal, while the 2035 maturities attracted relatively stronger investor interest and accounted for the bulk of the day's trades.

Among the traded maturities, the 15.10.2028 bond traded within a yield range of 10.50%–10.60%, while the 01.08.2030 maturity changed hands between 11.20% and 11.30%.

Further along the curve, the 01.10.2032 maturity traded between 11.50% and 11.60%, while the 15.01.2033 maturity traded within a range of 11.55%–11.65%.

T

owards the longer end, the 15.06.2034 maturity traded between 11.60% and 11.70%. In the 2035 segment, both the 15.03.2035 and 15.06.2035 maturities saw comparatively active trading, with yields ranging between 11.70% and 11.85%.

On the external front, the LKR appreciated against the USD, standing at LKR 336.03/USD, compared to LKR 336.29/USD seen earlier. Liquidity in the banking system expanded to LKR 128.47Bn from LKR 81.20Bn recorded previously.       

Popular maturities traded during the day:

01.08.2030: -5bps

15.03.2035: -5bps

-First Capital Research