The Colombo Bourse closed in negative territory today, with the ASPI declining by 107 points to close at 21,425, while the S&P SL20 fell by 25 points to close at 5,997.

Investor sentiment remained subdued as escalating Middle East tensions and the continued rise in global oil prices weighed on market confidence.

HNW participation was limited, with a few negotiated crossings recorded during the session, while retail participation remained at average levels.

The main negative contributors to the ASPI were LION, MELS, VONE, JKH, and CARS. Daily turnover stood at LKR 1.1Bn, marking a decrease of 44.9% compared to the monthly average of LKR 2.0Bn.

Banking sector led the daily turnover with a share of 20%, followed by the Food, Beverage & Tobacco, and Materials sectors collectively contributing 28%. Foreign investors remained net sellers, posting a net outflow of LKR 126.9Mn.

BOND MARKET

Secondary market records mixed activity

The secondary bond market witnessed mixed sentiment today, with selling pressure concentrated at the short end of the yield curve, while buying interest emerged in longer-dated maturities.

Meanwhile, yields across the belly to the long end edged marginally higher following yesterday’s bond auction. Both local and foreign banks remained active participants in the market. 

Among the traded maturities, 01.08.2030 and 15.10.2030 traded in the 11.50%–11.59% range at the short end. In the belly of the curve, 01.11.2033 traded at 11.90%, while 15.06.2034 and 15.10.2034 changed hands between 12.00%–12.05%.

At the long end, 01.07.2037 attracted buying interest and traded at 12.60%. On the external front, the LKR depreciated against the USD, standing at LKR 336.22/USD, compared to LKR 335.76/USD seen earlier. Overnight liquidity in the banking system contracted to LKR 151.99Bn from LKR 152.35Bn recorded previously.

Popular maturities traded:

15.10.2030: +3bps

15.06.2034: +15bps

15.10.2034

01.07.2037

-First Capital Research-