The Colombo Bourse maintained a mildly positive sentiment throughout the session, supported by cautious buying as investors opted to accumulate stocks in relatively small quantities.

The ASPI rose 52 points to close at 19,693, while the S&P SL20 gained 10 points to finish at 5,612, reflecting broad-based gains across both indices.

DIAL, CARS, CCS, SEMB and LGL remained the top positive contributors to the ASPI. Market activity remained measured, reflecting continued investor caution despite the positive momentum observed from the morning onwards.

Both retail and HNW investors contributed to market activity, with notable trading in CIC across retail transactions and crossings.

Turnover remained below the LKR 1.0Bn mark, although it recorded an improvement compared to the previous session standing at LKR 849.4Mn, marking a decrease of 34.9% over the monthly average of LKR 1.3Bn.

Materials sector led the daily turnover with a share of 27%, followed by the Capital Goods, and Banking sectors collectively contributing 24%. Foreign investors turned net buyers, posting a net inflow of LKR 35.1Mn.

BOND MARKET

Foreign selling dominates market sentiment

While domestic sentiment appeared largely mixed, foreign selling dominated overall investor sentiment, prompting a modest upward adjustment in the yield curve.

Investor participation and trading volumes appeared moderate. Activity was yet again clustered around mid-tenors with 15.10.2030 trading at 11.60% to 11.65%.

In the 2031 segment, 15.03.2031 traded within the narrow range of 11.80% to 11.83% while 01.12.2031 traded higher at 11.90%.

Further along the curve, 01.11.2033 changed hands at 12.37% while 15.06.2034 and 15.09.2034 both traded from 12.55% to 12.60%.

Finally, at the belly end of the curve, 15.03.2035 and 15.06.2035 were seen trading at 12.65% and 12.66% respectively.

On the external front, the LKR depreciated against the USD, standing at LKR 332.31/USD, compared to LKR 332.23/USD seen earlier.

Market liquidity in the banking system expanded to LKR 391.50Bn compared to LKR 378.78Bn recorded previously.

-First Capital Research