The Colombo Bourse closed on a positive note today, with the ASPI gaining 42 points to close at 21,229, while the S&P SL20 advanced 13 points to close at 5,961.

Investor sentiment remained positive, extending yesterday's buying momentum, with buying interest in selected blue-chip counters supporting the market's upward movement.

High-net-worth (HNW) and institutional investor participation primarily supported the ASPI, while retail investor participation remained at average levels. The main positive contributors to the ASPI were DOCK, JKH, COMB, ACL, and NDB. Daily turnover stood at LKR 2.0Bn, marking an increase of 14.5% over the monthly average of LKR 1.8Bn.

Retailing sector led the daily turnover with a share of 51%, followed by the Banking, and Capital Goods sectors collectively contributing 24%. Foreign investors turned net sellers, posting a net outflow of LKR 1,023.6Mn.

BOND MARKET

Secondary market remains subdued as T-Bill auction yields continue to ease

Similar to the previous trading session, the secondary yield curve experienced a subdued trading session, with moderate trading volumes and activity.

Market activity was relatively low, as participation from both banks and primary dealers remained moderate. Among the traded maturities, the 15.10.2028 and 15.12.2028 maturities traded within a range of 10.75% to 10.77%, while the 01.08.2030 maturity changed hands between 11.70% to 11.75%.

Meanwhile, the 15.01.2033 maturity traded at a rate of 12.25%. Moreover, the PDMO concluded its weekly T-Bill auction, successfully raising the full initial offer of LKR 140.0Bn. The 3M and 6M bills raised LKR 71.9Bn and LKR 50.0Bn respectively.

The 12M bill raised LKR 18.1Bn, lower than the initial offer of LKR 30.0Bn. The weighted average yields of the 3M and 6M bills adjusted down by 9bps and 3bps respectively to stand at 9.86% and 10.21% while that of the 12M bill remained unchanged at 10.20%. On the external front, the LKR remained flat at 336.25/USD, compared to yesterday. Overnight liquidity in the banking system contracted to LKR 165.96Bn from LKR 173.80Bn recorded previously.

-First Capital Research-