The Colombo Bourse closed on a mixed note today, with the ASPI declining by 7 points to close at 21,122, while the S&P SL20 closed nearly flat at 5,940. Mixed investor sentiment prevailed throughout the session, with selling pressure in selected counters keeping the market in negative territory.

However, market turnover was supported by crossings from HNW and institutional investors, while retail participation remained at average levels. Main negative contributors to the ASPI were CARG, HHL, RICH, CARS, and AEL. Daily turnover stood at LKR 1.4Bn, marking a decrease of 23.8% over the monthly average of LKR 1.9Bn.

Banking sector led the daily turnover with a share of 29%, followed by the Food Beverage & Tobacco, and Capital Goods sectors collectively contributing 40%. Foreign investors turned to net sellers, posting a net outflow of LKR 78.4Mn.

BOND MARKET

Selective early buying gives way to late selling, keeping sentiment mixed

Activity was largely concentrated in the belly of the yield curve, where early buying interest drove a modest decline in yields before fading as the session progressed.

Trading volumes remained moderate today. At the short end of the yield curve, 15.05.2028 and 01.10.2028 traded between 10.50% to 10.60%. Moving ahead, 01.08.2030 traded between 11.30% to 11.40% while 15.10.2030 was seen trading within the 11.35% to 11.45% range.

Further along the yield curve, 01.02.2031 traded between 11.60% to 11.43% while 15.10.2034 changed hands between 12.10% to 12.25%. At the long end of the curve, 15.08.2036 and 01.07.2037 traded between 12.65% - 12.80% and 12.70% - 12.82% respectively.

On the external front, the LKR appreciated against the USD, standing at LKR 335.78/USD, compared to LKR 336.05/USD seen earlier.

**Overnight liquidity data for the day was unavailable on the CBSL website at the time of writing.

-First Capital Research