The Colombo Bourse recorded a steady decline throughout the session amid broadly negative investor sentiment, with weakness in blue-chip counters weighing on the indices.

The ASPI dropped 133 points to close at 20,518, while the S&P SL20 closed at 5,816 experiencing a 28-point drop. COMB, DIAL, CARS, HAYL and TKYO remained the top negative contributors to the ASPI.

Both HNW and retail investor participation remained at average levels, while market activity was relatively balanced. Turnover also remained around average levels, reflecting a relatively subdued trading session.

Daily turnover stood at LKR 2.0Bn, marking an increase of 42.1% over the monthly average of LKR 1.4Bn. Energy sector led the daily turnover with a share of 29%, followed by the Food, Beverage & Tobacco, and Diversified Financials sectors collectively contributing 32%. Foreign investors remained net sellers, posting a net outflow of LKR 23.1Mn.

BOND MARKET

Subdued secondary market activity amid selling pressure

The secondary bond market remained relatively subdued today, with limited activity and moderate volumes.

The overall flow was tilted towards selling, although some buying interest was observed in the 2028 maturity. Among the trades recorded today, the 15.10.2028 maturity traded at 10.55%.

Further along the curve, the 01.08.2030, 15.10.2030, and 01.02.2031 maturities traded within a range of 11.25%-11.40%. Today, the PDMO concluded its weekly T-Bill auction, raising LKR 80.0Bn, in line with the total amount offered.

For the 3M T-Bill, LKR 35.0Bn was initially offered, while LKR 44.1Bn was accepted. The weighted average yield rate (WAYR) increased by 2bps to 9.27%.

For the 6M T-Bill, the PDMO accepted LKR 29.5Bn against an offered amount of LKR 25.0Bn, with the WAYR rising by 3bps to 9.44%. For the 12M T-Bill, LKR 6.4Bn was accepted, which was below the offered amount, while the WAYR remained unchanged at 9.95%.

On the external front, the LKR depreciated against the USD, standing at LKR 330.87/USD, compared to LKR 330.62/USD seen earlier. Market liquidity in the banking system expanded to LKR 390.68Bn compared to LKR 353.98Bn recorded previously.

-First Capital Research-