The Colombo Bourse ended on a negative note today, amidst the cautious investor sentiment towards the persisting geopolitical uncertainties.

The ASPI dropped by 126 points and closed at 20,059, whilst the S&P SL20 closed at 5,701, losing 38 points.

DIAL, HNB, HHL, OSEA, and JKH were the top negative contributors to the ASPI. Participation from retail investors was at a subdued level, while there were off-board transactions on JKH and SAMP.

However, the trading volumes were low throughout the session. Turnover stood below LKR 1.0Bn, totaling LKR 680.3Mn, 51.5% lower than the monthly average level of LKR 1.4Bn.

This marks the lowest turnover level since 02nd Oct 2026, during which turnover stood at LKR 873.4Mn.

Banks led the daily turnover with a share of 28%, followed by the Capital Goods and Materials sectors collectively contributing 37%. Foreign investors remained net sellers, posting a net outflow of LKR 39.3Mn.

BOND MARKET

Selling pressure prompts an uptick in yields

Secondary market activity soared today, with a notable increase in volumes traded, as some selling pressure kicked in from both foreign and local investor groups.

This prompted an upward shift in the yield curve, with a sharper increment in yields noted towards the longer end.

Despite the prevailing selling pressure, some buying interest emerged, whilst investor sentiment continued to be shaped by the ongoing global uncertainties.

Amongst the trades that were observed today, the 01.08.2030 maturity traded at 11.55% and this was followed by maturities within the 2031 segment, namely the 01.02.2031 maturity, which traded at 11.75% and the 01.12.2031 maturity, which traded at 11.90%.

Moving along the curve, the 15.01.2033 bond was seen changing hands at 12.25%. Lastly, within the 2034 bracket, the 15.06.2034, 15.09.2034 and 15.10.2034 maturities traded from 12.32% to 12.48%.

On the external front, the LKR marginally appreciated against the USD, standing at LKR 331.28/USD, compared to LKR 331.29/USD seen earlier.

Note: Liquidity data for 19 October 2026 had not been released by the CBSL at the time of publication.

-First Capital Research-