The Colombo Bourse ended on a negative note today after a volatile trading session, with the ASPI declining by 20 points to close at 21,129, while the S&P SL20 edged down by 6 points to 5,940.

Despite the market trading in positive territory during the morning session and recording healthy turnover, profit-taking and mixed investor sentiment weighed on the indices by the close.

Market activity was primarily driven by HNW and institutional investors, while retail participation remained at average levels. Main negative contributors to the ASPI were HNB, CFIN, DFCC, HAYL, and LOLC.

Daily

turnover stood at LKR 4.3Bn, marking an increase of 150.3% over the monthly average of LKR 1.7Bn. Capital Goods sector led the daily turnover with a share of 31%, followed by the Retailing and Telecommunication sectors collectively contributing 40%. Foreign investors turned into net buyers, posting a net inflow of LKR 955.2Mn

BOND MARKET

Market ends steady as buying interest persists

The market extended its positive momentum today, closing with sustained buying interest despite moderate trading volumes.

Activity remained steady across the curve, while the overall yield curve was largely unchanged. In the short-tenor segment, 15.03.2028 and 10.10.2028 traded at 10.50%.

In the 2029 maturities, 15.09.2029 and 15.12.2029 traded between 11.00–11.05%. The 2030 segment attracted notable investor interest, with 15.05.2030, 01.07.2030, 01.08.2030, and 15.10.2030 trading between 11.60% -11.30%.

Further along the curve, 01.02.2031 traded at 11.70% - 11.60%. Meanwhile, 15.01.2033 traded at 12.05% - 12.00%, while 15.10.2034 traded between 12.25% to 12.18%.

Finally, 15.08.2036 and 01.07.2037 traded between 12.75% to 12.60%. On the external front, the LKR appreciated against the USD, standing at LKR 336.05/USD, compared to LKR 336.18/USD seen earlier. Overnight liquidity in the banking system contracted to LKR 183.34Bn from LKR 195.00Bn recorded previously.

Popular maturities:

15.05.2030 – +8bps

01.07.2030 –

01.08.2030 – -10bps

15.10.2030 – -10bps

01.02.2031 – -10bps

15.10.2034 – -11bps

Courtesy: First Capital Research-