Amid an easing global geopolitical environment and softer oil prices, investor sentiment at the Colombo Bourse remained positive for the third consecutive trading session.

The ASPI advanced by 100 points to close at 21,370, while the S&P SL20 gained 17 points to settle at 5,988. HAYL, CFIN, JKH, RIL, and DOCK were the primary positive contributors to the ASPI.

Participation from both HNW and retail investors remained at average levels throughout the session. Daily turnover stood at LKR 1.9Bn, marking a decrease of 29.6% over the monthly average of LKR 2.7Bn.

Banking sector led the daily turnover with a share of 32%, followed by the Capital Goods, and Diversified Financials sectors collectively contributing 30%.Foreign investors remained net sellers, posting a net outflow of LKR 15.8Mn.

BOND MARKET

Modest buying nudges yields marginally lower

Today's session saw modest buying interest emerge, leading to a marginal downward shift in the yield curve. At the short end of the curve, 15.02.2028, 01.05.2028 and 01.09.2028 traded between 10.50% to 10.40% while 15.09.2029 and 15.12.2029 were seen trading within the 10.95%-10.80% range.

In the 2030 segment, 01.03.2030 changed hands at 11.00% while 15.05.2030, 01.07.2030 and 15.10.2030 traded between 11.35% to 11.15%. Further along the yield curve, 15.12.2032 was seen changing hands at 11.75%. Finally, at the long end of the curve 01.07.2037 traded between 12.66% to 12.56%. 

On the external front, the LKR appreciated against the USD, standing at LKR 335.43/USD, compared to LKR 335.60/USD seen earlier. Overnight liquidity in the banking system expanded to LKR 246.8Bn from LKR 218.0Bn recorded previously.

-First Capital Research