The Colombo Bourse traded in positive territory today, supported by slightly improved investor sentiment, largely driven by decline in global oil prices.

Both HNW and foreign investors contributed positively to market activity, with notable foreign investor participation observed throughout the session.

Retail and HNW participation remained broadly balanced and around average levels. The ASPI rose by 40 points to close at 20,120, while the S&P SL20 rose by 21 points to close at 5,723, reflecting the marginal improvement in investor sentiment.

The top positive contributors to the ASPI remained DIAL, CIC, MAL, SEMB and OSEA. Turnover crossed the LKR 1.0Bn mark, reflecting an improvement in overall market activity. Daily turnover stood at LKR 1.5Bn, marking an increase of 10.1% over the monthly average of LKR 1.4Bn.

Real Estate Management & Development sector led the daily turnover with a share of 17%, followed by the Transportation, and Banking sectors collectively contributing 32%. Foreign investors remained net sellers, posting a net outflow of LKR 242.5Mn.

BOND MARKET

Yield curve dips on the back of modest buying

The yield curve inched down by around 5bps, driven by modest buying. Investor activity appeared limited while trading volumes were moderate.

Within the 2030 segment, 01.03.2030 and 15.10.2030 traded at 11.45% and 11.60% respectively, while further ahead on the curve, 01.02.2031 was seen trading at 11.70%.

Moreover, 01.06.2033 traded at 12.35% and towards the belly-end of the curve, 15.10.2034 changed hands from 12.57% to 12.49%.

Finally, 15.08.2036 traded between 12.87% to 12.80%. On the external front, the LKR stood flat at LKR 332.6/USD. Market liquidity in the banking system contracted to LKR 389.68Bn compared to LKR 400.92Bn seen previously.

-First Capital Research-