The Colombo Bourse closed in negative territory today, with the ASPI declining by 118 points to close at 21,962, while the S&P SL20 fell 32 points to close at 6,136.

Investor sentiment remained subdued amid broad-based selling pressure across selected counters. HNW participation remained slightly active, supported by several negotiated crossings, while retail participation remained at average levels.

The main negative contributors to the ASPI were DIAL, MELS, JKH, CARS, and CIC. Daily turnover stood at LKR 1.5Bn, marking a decrease of 27.2% over the monthly average of LKR 2.1Bn.

Capital Goods sector led the daily turnover with a share of 31%, followed by the Retailing, and Materials sectors collectively contributing 22%. Foreign investors remained net sellers, posting a net outflow of LKR 185.1Mn.

BOND MARKET

Yield curve unchanged, with foreign buying in 2030

Today's session saw mixed activity on moderate volumes, with the yield curve remaining broadly unchanged. In the short tenors, the 2028 maturities attracted buying interest from domestic banks, although trading volumes remained modest, resulting in an approximate 5bps decline in yields.

Consequently, 15.02.2028, 15.03.2028, 01.05.2028 and 01.07.2028 maturities traded in the 10.50%-10.60% range. Moving further along the curve, 15.12.2029 was seen trading at 11.00%. Trading activity was especially visible in the 2030 segment with 01.03.2030 and 15.05.2030 trading at 11.10% and 11.22% respectively while 01.07.2030 and 01.08.2030 both traded at 11.25%.

The 15.10.2030 maturity attracted buying interest from foreign investors and traded at 11.30%. Finally, the 15.12.2032 maturity was seen changing hands at 11.60%. On the external front, the LKR appreciated against the USD, standing at LKR 334.95/USD, compared to LKR 335.26/USD seen earlier. Liquidity in the banking system expanded marginally to LKR 134.77Bn from LKR 132.29Bn recorded previously. Popular maturities traded:

15.10.2030: 11.30% (unchanged)

-First Capital Research-