The Colombo Bourse wrapped up a full week of intraday losses as the market witnessed an increase in selling pressure amidst the prevailing weakness in sentiment, attributed to the ongoing uncertainties and global pressures.

The ASPI dropped 33 points to close at 19,685, whilst the S&P SL20 registered a minor decline of 5 points to end at 5,614. The index witnessed some early positivity, which gradually lost momentum as continued declines from around midday dragged the index lower.

The top negative contributors to the index were DIAL, CARS, PAP, LAMB and HAYL. Turnover for the day fell short of the LKR 1.0Bn mark, amounting to LKR 825.1Mn, which stands approximately 39.2% below the monthly average of LKR 1.4Bn, as participation from both retail and HNW investors stood subdued.

The Banking sector accounted for the largest share of turnover at 22%, followed by the Food, Beverage & Tobacco, and Capital Goods sectors, which jointly contributed 31%. Foreign investors remained net buyers, accounting for a net inflow of LKR 37.6Mn.

BOND MARKET

Secondary market ends the week on a quiet footing

The secondary market withstood yet another lackluster trading day characterized by constrained investor participation and low trading volumes. Investor sentiment appeared mixed prompting the yield curve to remain largely anchored.

Investor activity was yet again primarily clustered around mid-tenors with 15.05.2030, 01.08.2030 and 15.10.2030 trading at 11.35%, 11.50% and 11.55% respectively. Further along the curve, 01.12.2031 changed hands at 11.85% and 01.11.2033 was seen trading at 12.30%. Finally, towards the belly end of the curve, 15.03.2035 traded at 12.53%. On the external front, the LKR depreciated against the USD, standing at LKR 332.03/USD, compared to LKR 331.91/USD seen earlier. Market liquidity in the banking system expanded marginally to LKR 384.90Bn compared to LKR 380.98Bn recorded previously.

-First Capital Research-