Against the backdrop of persistent rise in oil prices and unresolved confrontation between the US and Iran, investors adopted a cautious stance today as well.

Both the ASPI and S&P SL20 closed the session in negative territory, with the ASPI declining by 63 points to close at 21,417, while the S&P SL20 fell 21 points to end at 6,020.

Participation from retail investors was low, thereby HNW and institutional investors were the main contributors to the turnover. SAMP, BREW, CFIN, BUKI and DIAL were the key negative contributors to the index.

Turnover levels were low, amounting to LKR 1.5Bn, predominantly supported by crossings, and was 49.1% below the monthly average turnover of LKR 3.0Bn. 

Food, Beverage & Tobacco sector dominated today’s turnover, accounting for 30%, while the Banking and Capital Goods sectors collectively contributed a further 42%. Foreign investors turned net buyers, posting a net inflow of LKR 103.2Mn.

BOND MARKET

Secondary market sees mixed activity amid modest volumes

The secondary market saw mixed activity today, with modest volumes and slight movements across the yield curve. At the short end of the curve, 01.05.2028 traded at 10.05%.

In the 2029 segment, 15.10.2029 and 15.12.2029 traded between 10.50% and 10.55%. In the 2030 segment, 01.08.2030 and 15.10.2030 traded between 10.80% and 10.90%. In the belly of the curve, 15.12.2032 traded at 11.25%. In the 2033 segment, 15.01.2033 traded at 11.50% while 01.11.2033 traded at 11.60%.

The 15.10.2034 maturity traded at 11.85%. Finally, at the long end of the curve, 01.07.2037 attracted foreign interest and traded between 12.15% and 12.10%. Moreover, the PDMO concluded its weekly T-Bill auction, successfully raising the full initial offer of LKR 140.0Bn.

The 3M, 6M, and 12M bills raised LKR 55.0Bn, LKR 45.0Bn, and LKR 40.0Bn, respectively, in line with the amounts initially offered. The weighted average yields on the 3M and 6M, bills declined by 22bps and 18bps respectively, to 9.22% and 9.60%.

Meanwhile, the 12M T-bill yield declined by 10bps, moving into single-digit territory after May-26, and settling at 9.91%. On the external front, the LKR appreciated against the USD, standing at LKR 331.83/USD, compared to LKR 332.29/USD seen earlier. Market liquidity in the banking system contracted to LKR 288.98Bn from LKR 292.85Bn recorded previously.

-First Capital Research-