The Colombo Bourse continued its upward momentum today, supported by improved investor sentiment amid a decline in global oil prices.

The ASPI surged 592 points to close at 22,123, while the S&P SL20 gained 225 points to close at 6,368, marking substantial gains across both indices.

The top positive contributors to the ASPI were COMB, DIAL, HNB, HAYL and VONE. Both retail and HNW participation remained elevated, with the two investor segments contributing almost equally to overall market activity.

HNW investors demonstrated particularly strong interest in blue-chip counters, driving significant trading activity across large-cap stocks.

Overall turnover recorded its highest level since August, highlighting a substantial resurgence in market activity and investor participation.

Daily turnover stood at LKR 8.0Bn, marking an increase of 361.5% over the monthly average of LKR 1.7Bn. Banking sector led the daily turnover with a share of 26%, followed by the Telecommunication, and Capital Goods sectors collectively contributing 33%.

Foreign investors remained net sellers, posting a net outflow of LKR 1,203.0Mn.

BOND MARKET

Yield curve dips marginally on the back of modest buying

Continued optimism in the geopolitical front and declining global oil prices ignited buying interest in the secondary market. As a result, the yield curve underwent a modest downward adjustment across the board while trading volumes appeared moderate.

Within the 2030 segment, 01.03.2030, 01.08.2030 and 15.10.2030 traded from 11.05% to 10.95%. Moving ahead, 01.12.2031 traded between 11.20% to 11.10%, while 15.12.2032 changed hands from 11.55% to 11.50%.

At the belly of the yield curve, 15.01.2033, 01.06.2033 and 01.11.2033 traded from 11.80% to 11.65%. Further along the curve, 15.06.2034, 15.09.2034 and 15.10.2034 changed hands from 12.00% to 11.95%.

 Finally, 01.03.2035 was seen trading at 12.10% while 15.08.2036 traded from 12.25% to 12.20%. On the external front, the LKR remained flat against the greenback, standing at LKR 332.56/USD.

Market liquidity in the banking system expanded to LKR 455.19Bn compared to LKR 429.10Bn seen previously.

-First Capital Research-