The Colombo Bourse traded in positive territory today, supported by improved investor sentiment and stronger market participation.

The positive momentum may have been influenced by development surrounding the conclusion of the Israeli elections.

The ASPI rose 278 points to close at 19,970, while the S&P SL20 closed at 5,693 displaying an 80-point increment. COMB, DIAL, HNB, HHL and CIC remained the top positive contributors to the ASPI.

Both retail and HNW participation increased, with retail investors accounting for a larger share of turnover despite relatively stronger participation from HNW investors in overall market activity.

Turnover crossed the LKR 2.0Bn mark, standing LKR 2.2Bn, marking an increase of 66.3% over the monthly average of LKR 1.3Bn, reflecting an improvement in trading activity.

Telecommunication sector led the daily turnover with a share of 39%, followed by the Food Beverage & Tobacco, and Materials sectors collectively contributing 27%. Foreign investors turned net sellers, posting a net outflow of LKR 894.3Mn

BOND MARKET

Mixed sentiment in the secondary market amid subdued trading activity

The secondary market experienced mixed sentiment today, with the overall yield curve remaining largely unchanged amid moderate activity and subdued trading volumes.

While foreign selling pressure was evident in the longer tenors, particularly in the 2033 and 2034 maturities, this was partially offset by buying interest from domestic investors.

Among the actively traded maturities, the 15.10.2030 bond traded at 11.63%, while the 01.12.2031 and 15.12.2032 maturities recorded yields of 11.90% and 12.10%, respectively.

Further along the curve, the 01.11.2033 maturity traded at 12.38%. Within the 2034 segment, the 15.06.2034, 15.09.2034 and 15.10.2034 maturities traded within a yield range of 12.50% to 12.55%.

Today, the PDMO concluded its weekly T-Bill auction, raising LKR 86.5Bn, below the initial offer amount of LKR 100.0Bn. For the 3M T-Bill, LKR 50.0Bn was initially offered, while LKR 68.1Bn was accepted. The weighted average yield rate (WAYR) increased by 2bps to 9.34%.

For the 6M T-Bill, the PDMO accepted only LKR 9.3Bn against an offered amount of LKR 25.0Bn, with the WAYR remaining unchanged at 9.44%.

For the 12M T-Bill, LKR 9.0Bn was accepted, which was below the offered amount, while the WAYR remained unchanged at 9.95%. On the external front, the LKR depreciated against the USD, standing at LKR 332.41/USD, compared to LKR 332.31/USD seen earlier.

Market liquidity in the banking system contracted to LKR 389.55Bn compared to LKR 391.50Bn recorded previously.

-First Capital Research-