The Colombo Bourse continued its downward trajectory today, with heightened selling sentiment weighing on market performance.

The ASPI fell 94 points to close at 20,944, while the S&P SL20 declined by 20 points to close at 5,921. Top negative contributors to the ASPI were CARS, DIAL, COMB, CINS and SEMB.

Turnover remained below the LKR 1.0Bn mark, recording its lowest level of the year, with HNW activity remaining thin as investors took a backseat. Retail participation was also low, although retail investors accounted for the majority of turnover.

Selling pressure was heightened by margin calls towards the September month-end, contributing to the continued weakness in the market. Daily turnover stood at LKR 0.6Bn, marking a decrease of 60.9% over the monthly average of LKR 1.5Bn.

Diversified Financials sector led the daily turnover with a share of 22%, followed by the Capital Goods, and Materials sectors collectively contributing 38%. Foreign investors turned net buyers, posting a net inflow of LKR 7.9Mn.

BOND MARKET

Yields edge up driven by modest selling pressure

Broader investor stance appeared mixed today amid limited trading volumes and investor participation as investors await the announcement of the monetary policy decision on the 30th Sep-26 .

However, bouts of selling, some of which stemmed from foreign investors that persisted throughout the session prompted a modest upward adjustment of the yield curve across the board.

Among the traded maturities, 01.08.2030 and 15.10.2030 traded from 11.15% to 11.30% while 01.02.2031 changed hands from 11.25% to 11.30%. Further along the yield curve, 15.12.2032 traded at 11.75%. In the 2033 segment, 15.01.2033 and 01.11.2033 traded at 11.85% and 11.90% respectively.

At the belly end of the curve, 15.06.2034, 15.09.2034 and 15.10.2034 all traded from 11.95% to 12.05% while 15.06.2035 was seen trading at 12.10%. On the external front, the LKR appreciated marginally against the USD, standing at LKR 330.26/USD, compared to LKR 330.35/USD seen earlier. Market liquidity in the banking system expanded to LKR 384.12Bn compared to LKR 370.92Bn recorded previously.

-First Capital Research-