The Colombo Bourse closed in negative territory today, with the ASPI declining by 131 points to close at 21,698, while the S&P SL20 fell 33 points to close at 6,066.

Investor sentiment remained weak amid continued selling pressure, while lingering geopolitical tensions in the Middle East kept investors cautious.

HNW participation was visible on selective shares and contributed the majority of turnover, while retail participation remained at average levels.

The main negative contributors to the ASPI were COMB, MELS, LION, HAYL, and JKH. Daily turnover stood at LKR 1.4Bn, marking a decrease of 29.9% over the monthly average of LKR 2.1Bn.

Capital Goods sector led the daily turnover with a share of 37%, followed by the Food Beverage & Tobacco, and Banking sectors collectively contributing 26%. Foreign investors remained net sellers, posting a net outflow of LKR 91.7Mn.

BOND MARKET

Yield curve edges slightly higher amid pre-auction selling pressure

Secondary bond market trading was characterized by selling interest ahead of the upcoming T-Bond auction, resulting in the yield curve edging slightly higher.

Overall market activity remained subdued, with only moderate trading volumes recorded during the session. In the 2030 maturity segment, the 15.05.2030, 01.08.2030, and 15.10.2030 maturities traded within a yield range of 11.30%-11.50%.

Further along the curve, the 01.10.2032 maturity changed hands at 11.65%, while the 01.11.2033 maturity traded between 11.75% and 11.83%.

The Public Debt Management Office is expected to issue LKR 150.0Bn in T-Bonds on 13 July 2026. The issuance will comprise LKR 70.0Bn in 2030 maturity, followed by LKR 50.0Bn in 2034 maturity and LKR 30.0Bn in 2037 maturity. 

On the external front, the LKR depreciated against the USD, standing at LKR 335.46/USD, compared to LKR 334.71/USD seen earlier. Liquidity in the banking system expanded to LKR 139.01Bn from LKR 125.89Bn recorded previously. Popular maturities traded:

01.08.2030: +8bps

15.10.2030: -9bps

-First Capital Research-