Sri Lanka's benchmark All Share Price Index (ASPI) surged to a new all-time high on Monday, closing up 106 points at 17,500, marking a 3.8% gain month-to-date. The rally was driven largely by positive investor sentiment and active retail participation, reversing the profit-taking mood that characterized the previous session.
The index opened strong, briefly dipped during mid-session, but rebounded steadily to end firmly in the green. Key contributors to the day’s gains included Hayleys (HAYL), Ceylinco Insurance (CINS), Ceylon Cold Stores (CCS), Hatton National Bank (HNB), and Ceylon Tobacco Company (CTC).
Retail investors remained engaged throughout the session, while high-net-worth (HNW) investors displayed selective interest, particularly in banking counters such as Pan Asia Banking Corporation (PABC), Nations Trust Bank (NTB), and Sampath Bank (SAMP).
Market turnover amounted to LKR 2.9 billion, falling 39% below the monthly average of LKR 4.7 billion. The banking sector led in turnover, contributing 19%, followed by the diversified financials and materials sectors, which together accounted for 32%. Meanwhile, foreign investors continued their exit, registering a net outflow of LKR 19.3 million.
Bond Market Flat as Yields Hold Steady; CBSL Schedules Bond Auction
In the secondary government securities market, trading activity remained subdued with minimal volume, leaving the yield curve broadly unchanged.
On the shorter end, bonds maturing on 15.02.2028, 01.05.2028, and 01.07.2028 were traded at yields of 8.70%, 8.75%, and 8.81%, respectively. Further along the curve, the 15.09.2029 and 15.12.2029 maturities traded at 9.45% and 9.50%. The long-dated 15.03.2031 bond changed hands at a yield of 9.95%.
The Central Bank of Sri Lanka (CBSL) announced an upcoming auction for LKR 111 billion worth of Treasury bonds, scheduled for June 12, 2025. Of the total, LKR 41 billion will be raised through a 2029 maturity carrying a 10.35% coupon, while the remaining LKR 70 billion will be raised via a 2032 maturity bearing an 11.50% coupon.
LKR Gains Slightly Against USD; Liquidity Rises
In currency markets, the Sri Lankan Rupee appreciated marginally against the US dollar, closing at LKR 299.1/USD compared to LKR 299.3/USD in the prior session. Banking system liquidity improved, with overnight balances rising to LKR 182.7 billion from LKR 173.7 billion.
Courtesy: First Capital Research
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