The Colombo Bourse opened on a positive note but failed to sustain its early momentum, with continued fluctuations throughout the first half of the session before ultimately closing in negative territory.

The ASPI fell 44 points to close at 19,641, while the S&P SL20 declined by 12 points to finish at 5,602, with both indices ending in the red amid persistent market volatility.

CARS, COMB, LAMB, DIST and HAYL remained the top negative contributors to the ASPI HNW participation remained subdued, while retail participation was relatively higher, driven by margin selling.

Turnover continued the trend observed in the previous session, once again failing to cross the LKR 1Bn mark standing at LKR 0.7Bn, marking a decrease of 50.0% over the monthly average of LKR 1.3Bn.

Banking sector led the daily turnover with a share of 28%, followed by the Capital Goods, and Diversified Financials sectors collectively contributing 35%. Foreign investors turned net sellers, posting a net outflow of LKR 6.6Mn.

BOND MARKET

Mixed tones mark week’s start

Trading in the secondary market opened the week on a mixed footing, with buying sentiment observed at the short end, while the longer tenors attracted selling interest, primarily from foreign investors.

Similar to the previous week, trading activity was largely confined to mid tenors, starting off with the 2030 bracket, within which maturities dated 01.08.2030 and 15.10.2030 traded from 11.50% to 11.55%.

Moving along the belly, the 01.12.2031 bond traded at 11.85%, followed by the 15.12.2032 maturity at 12.00%. Within the 2033 segment, activity was noted in the 01.06.2033 and 01.11.2033 maturities, both of which traded from 12.30% to 12.36%.

Finally, within the 2034 segment, the 15.06.2034 and 15.10.2034 maturities traded from 12.45% to 12.50%. On the external front, the LKR depreciated against the USD, standing at LKR 332.23/USD, compared to LKR 332.03/USD seen earlier. Market liquidity in the banking system contracted to LKR 378.8Bn compared to LKR 384.90Bn recorded previously.

-First Capital Research-