The Colombo Bourse came under significant selling pressure today amid a broadly negative sentiment, with margin calls and macroeconomic headwinds weighing on investor confidence.

The ASPI dropped 283 points to close at 20,234, while the S&P SL20 fell 54 points to close at 5,763. DIST, DIAL, CARS, HNB and HHL remained the top negative contributors to the ASPI.

HNW investors accounted for a larger share of market activity than retail investors, driving the majority of turnover during the session.

Notable trading activity was witnessed in LMF, contributing to the day’s market activity. Turnover was slightly above average, despite the overall weakness in the market. Daily turnover stood at LKR 2.7Bn, marking an increase of 94.2% over the monthly average of LKR 1.4Bn.

Food Beverage & Tobacco sector led the daily turnover with a share of 58%, followed by the Capital Goods, and Diversified Financials sectors collectively contributing 22%. Foreign investors remained net sellers, posting a net outflow of LKR 17.4Mn.

BOND MARKET

Secondary market remains subdued as yield curve holds steady

Similar to yesterday, activity in the secondary market remained relatively subdued today, with limited trading and moderate volumes.

The overall yield curve remained unchanged. Among the traded maturities, the 01.11.2033, 15.06.2034, 15.10.2034, and 15.06.2035 maturities traded at yields of 11.95%, 12.08%, 12.10%, and 12.15%, respectively.

On the external front, the LKR depreciated against the USD, standing at LKR 330.98/USD, compared to LKR 330.87/USD seen earlier. LKR also depreciated other major currencies such as JPY and CNY and LKR appreciated other major currencies such as GBP, EUR, and AUD. 

Market liquidity in the banking system expanded to LKR 396.71Bn compared to LKR 390.68Bn recorded previously.

-First Capital Research-