The Colombo Bourse continued its positive momentum during the first half of trading, supported by the positive sentiment following yesterday’s credit rating upgrade.

However, profit-taking activity emerged later in the session, prompting the market to retreat from its intraday highs before recovering to close in positive territory.

The ASPI gained 31 points to close at 21,085, while the S&P SL20 closed at 5,948, showcasing a 19-point increment. Turnover remained below average, supported primarily by HNW participation, while retail activity remained slightly subdued as investors largely maintained a wait-and-see approach.

Daily turnover stood at LKR 1.3Bn, marking a decrease of 43.6% over the monthly average of LKR 2.3Bn. Capital Goods sector led the daily turnover with a share of 25%, followed by the Banking, and Materials sectors collectively contributing 44%. Foreign investors remained net sellers, posting a net outflow of LKR 2.6Mn

BOND MARKET

T-Bill auction yields rise, yield curve declines from belly to long end

The secondary market yield curve experienced mixed sentiment today, broadly similar to the previous session, amidst moderate trading volumes and activity.

The yield curve underwent a downward adjustment from the belly to the long end compared with yesterday. Amongst the traded maturities, the 01.08.2030 and 15.10.2030 maturities traded within the range of 11.10% to 10.95%.

Meanwhile, the 01.02.2031 maturity traded between 11.15% and 11.00%, while the 15.12.2032 maturity traded in the range of 11.40% to 11.35%. Further along the curve, both 01.06.2033 and 01.11.2033 maturities traded between 11.70% and 11.50%.

The 15.10.2034 maturity also recorded trades within the range of 11.85% to 11.80%. Today, the PDMO concluded its weekly T-Bill auction, raising LKR 60.0Bn, in line with the total amount offered. For the 3M T-Bill, LKR 20.0Bn was initially offered, while LKR 30.1Bn was accepted.

The weighted average yield rate (WAYR) increased by 2bps to 9.20%. For the 6M T-Bill, the PDMO accepted LKR 19.5Bn against an offered amount of LKR 25.0Bn, with the WAYR rising by 1bps to 9.37%.

For the 12M T-Bill, LKR 10.4Bn was accepted, which was below the offered amount, while the WAYR increased by 5bps to 9.93%. On the external front, the LKR appreciated against the USD, standing at LKR 329.89/USD, compared to LKR 330.81/USD seen earlier. Market liquidity in the banking system expanded to LKR 363.87Bn compared to LKR 294.09Bn recorded previously.

-First Capital Research-