The Colombo Bourse closed sharply lower today, with the ASPI declining by 233 points to close at 21,532, while the S&P SL20 fell 55 points to 6,022.

Investor sentiment remained negative as escalating geopolitical tensions in the Middle East continued to weigh on market confidence, prompting broad-based selling pressure.

HNW participation remained very low, while retail participation was above average. The main negative contributors to the ASPI were CTHR, COMB, SAMP, MELS, and HNB.X.

Daily turnover stood at LKR 1.0Bn, marking a decrease of 48.0% compared to the monthly average of LKR 2.0Bn. Banking sector led the daily turnover with a share of 27%, followed by the Food Beverage & Tobacco, and Capital Goods sectors collectively contributing 32%. Foreign investors remained net sellers, posting a net outflow of LKR 55.9Mn.

BOND MARKET

Limited trading amidst T-Bond auction

Amidst the T-Bond auction held today, the secondary market saw a lackluster trading session with limited activity, while the yield curve remained broadly unchanged.

As the trades were concentrated towards the 2030 segment, the 01.03.2030 and 15.10.2030 bonds traded at 11.25% and 11.50% respectively.

At the T-Bond auction held today, the PDMO successfully raised the full amount offered. Of the total accepted, LKR 70.0Bn was raised through the 2030 maturity, LKR 50.0Bn through the 2034 maturity, and LKR 30.0Bn through the 2037 maturity, at weighted average yields of 11.57% and 12.04%, and 12.58% respectively.

On the external front, the LKR appreciated against the USD, standing at LKR 335.76/USD, compared to LKR 336.40/USD seen earlier. Overnight liquidity in the banking system expanded to LKR 152.35Bn from LKR 116.72Bn recorded previously.

-First Capital Research-