The Colombo Bourse closed on a positive note today, with the ASPI gaining 14 points to close at 21,187, while the S&P SL20 advanced 6 points to close at 5,949. Investor sentiment was primarily supported by the sharp decline in global oil prices, which eased concerns over inflationary pressures and reduced input cost expectations.

Sentiment was further supported by easing US-Iran tensions. HNW investors were the primary contributors to today's turnover, which remained at a relatively high level. Meanwhile, retail investor participation was slightly above the average, reflecting continued broad-based market interest.

The main positive contributors to the ASPI were JKH, DIAL, SPEN, HNB, and ACL. Daily turnover stood at LKR 2.1Bn, marking an increase of 17.2% over the monthly average of LKR 1.8Bn. Capital Goods sector led the daily turnover with a share of 42%, followed by the Banking, and Food Beverage & Tobacco sectors collectively contributing 39%. Foreign investors remained net buyers, posting a net inflow of LKR 15.7Mn.

BOND MARKET

Tepid trading persists ahead of T-Bond auction

The secondary market opened the week on a quiet note, especially owing to the T-Bond auction set to take place on the 30th of July-26. Trading volumes were moderate while the yield curve remained largely anchored.

At the short end of the curve 15.09.2029 was seen trading at 11.23%. Investor interest was visibly centred across the 2030 segment, with 01.07.2030, 01.08.2030 and 15.10.2030 all trading between 11.60% to 11.68%.

Finally, 15.01.2033 traded at 12.27% while 01.11.2033 changed hands at a lower rate of 12.19%. The PDMO announced the issue of T-Bonds worth LKR 250.0Bn scheduled for the 30th of July. The auction offers four maturities; 2031 (LKR 90.0Bn), 2034 (LKR 80.0Bn), 2036 (LKR 50.0Bn) and 2037 (LKR 30.0Bn) maturities bearing coupons of 11.60%, 11.70%, 10.85% and 10.75% respectively.

On the external front, the LKR marginally appreciated against the USD, standing at LKR 336.25/USD, compared to LKR 336.26/USD seen earlier. Overnight liquidity in the banking system expanded to LKR 173.80Bn from LKR 163.07Bn recorded previously.

-First Capital Research-