The Colombo Bourse closed in negative territory today, with the ASPI declining by 134 points to close at 21,829, while the S&P SL20 fell 36 points to close at 6,100.

The market extended its downward trend amid continued selling pressure, reflecting the prevailing negative sentiment. HNW participation was high and accounted for a significant share of turnover, while retail participation remained above average.

The main negative contributors to the ASPI were SAMP, HAYL, DIAL, LOLC, and HNB.X. Daily turnover stood at LKR 2.3Bn, marking an increase of 8.3% over the monthly average of LKR 2.1Bn.

\Capital Goods sector led the daily turnover with a share of 32%, followed by the Food Beverage & Tobacco, and Banking sectors collectively contributing 38%. Foreign investors remained net sellers, posting a net outflow of LKR 22.5Mn.

BOND MARKET

Yield curve edges up amidst minimal trading activity

Trading activity in the secondary market was limited with thin volumes, while the yield curve slightly edged up across the board.  Over 2030 segment, 01.08.2030 and 15.10.2030 traded at 11.30% and 11.35% respectively.

Moving ahead, 01.11.2033 changed hands at 11.70% and both 15.06.2034 and 15.03.2035 traded at 11.80%. At the weekly Treasury bill auction, the Public Debt Management Office successfully raised the full initial offer of LKR 100.0Bn.

Acceptances on the 3M maturity totaled LKR 58.5Bn, higher than the initial offer of LKR 50.0Bn. While the 6M maturity was accepted equivalent to the offer of LKR 35.0Bn, only a portion of the 12M bill was accepted amounting to LKR 6.5Bn compared to its offer of LKR 15.0Bn.

The weighted average yield on the 3M bill decreased by 2bps to 10.21%, while the 6M bill stood flat at 10.30% and the 12M bill edged up by 1bp to 10.21%. On the external front, the LKR appreciated against the USD, standing at LKR 334.71/USD, compared to LKR 334.95/USD seen earlier. Liquidity in the banking system contracted to LKR 125.89Bn from LKR 134.77Bn recorded previously.

-First Capital Research-