The negative sentiment from yesterday carried over into today, as the Colombo Bourse experienced another session marked by selling pressure and lower activity compared to the previous day.
The ASPI opened with a decline, briefly showed signs of recovery, but soon reversed course to register continued losses amidst volatility.
The index dropped by 211 points to close at 17,071, with HAYL, CTHR, SAMP, DFCC, and HNB emerging as the key counters that exerted negative pressure.
Retail and HNW investor participation was subdued with primary interest focused on blue-chip counters such as JKH and VONE.
Turnover stood at LKR 3.9Bn, marking a 25% decrease compared to the monthly average of LKR 5.2Bn. The Capital Goods sector led today's turnover, contributing 25%, followed by the Diversified Financials, and Banking sectors, jointly accounting for 38%.
Foreign investors turned net buyers, with a net inflow of LKR 50.6Mn.
BOND MARKET
Caution prevails; 2028 yields tick up slightly
Amid ongoing geopolitical uncertainties, the market remained cautious, maintaining a prudent wait-and-see approach amid mixed sentiment.
In this environment, the yield curve edged slightly higher from the 2028 maturities. At the short end of the yield curve, 15.09.2027 traded at 8.55%.
Amongst the 2028 maturities, 15.02.2028 traded between 8.82% to 8.85% while 15.03.2028 traded at 8.90%.
Moreover, both 01.05.2028 and 01.07.2028 were seen changing hands at 8.93% while 15.10.2028 traded at 8.95%. Moving ahead, 15.09.2029 was seen trading at 9.49% while 15.12.2029 traded at 9.54%.
Finally, 15.03.2031 traded at a rate of 10.05%. Today, the Central Bank held its weekly T-Bill auction, raising LKR 114.6Bn—below the initial offer of LKR 132.0Bn.
The 3M bill raised LKR 31.0Bn, exceeding its initial offer of LKR 20.0Bn, with the yield steady at 7.55%. The 6M bill raised LKR 64.3Bn, also above the initial offer, with its yield rising slightly by 1bps to 7.73%. The 12M bill raised only LKR 19.2Bn, well below the initial LKR 50.0Bn offer, while its yield remained unchanged at 7.94%. In the forex market, the LKR depreciated marginally against the greenback, closing at LKR 300.84/USD, compared to the previously seen rate of 300.78/USD.
Meanwhile, overnight liquidity in the banking system contracted to LKR 101.1Bn from LKR 122.4Bn in the previous session.
Courtesy: First Capital Research
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