Following a mildly volatile start to the session, the Colombo Bourse gathered momentum and trended steadily higher during afternoon trading. The indices advanced, supported by the buying interest in blue-chip counters, which underpinned the upward movement.
ASPI advanced by 78 points, to settle at 23,781 and S&P SL20 gained 25 points, to close at 6,710. JKH, HAYL, MELS, AEL and LMF emerged as the key positive contributors to the index.
Market participation remained at an average level for both retail and HNW investors. Daily turnover stood at LKR 4.9Bn, marking a decrease of 16.0% over the monthly average of LKR 5.8Bn.
Banking sector counters experienced notable selling pressure, in the wake of recent fourth-quarter earnings releases, as investors reassessed valuations and near-term earnings outlooks.
Meanwhile, the Capital Goods sector emerged as the leading contributor to daily turnover, accounting for 27% of total market activity. The Banking and Diversified Financials sectors followed, collectively contributing 25% to overall turnover. Foreign investors turned net buyers, posting a net inflow of LKR 194.0Mn.
BOND MARKET
T-Bond auction concludes with full acceptance
The PDMO held today’s Treasury Bond auction and fully accepted the initially offered amount of LKR 140.0Bn. Acceptances on 01.03.2030, 01.06.2034 and 01.07.2037 maturities were LKR 40.0Bn, LKR 60.0Bn and LKR 40.0Bn, respectively while the weighted average yields stood at 9.49%, 10.70% and 10.87% respectively.
Following the T-Bond auction, the secondary market experienced renewed buying interest, supported by elevated activity and strong trading volumes. Within the 2029 maturities, 15.06.2029, 15.09.2029, 15.10.2029, and 15.12.2029 traded in the range of 9.35% to 9.42%.
Further along the yield curve, 01.03.2030, traded between the rates of 9.55% to 9.48% and 15.03.2031, maturity traded between the range of 9.75% to 9.70%. Furthermore, 01.10.2032 and 15.12.2032 traded between the rates of 10.22% to 10.12%.
Meanwhile, 01.06.2033 changed hands between the rates of 10.47% to 10.35%. Furthermore, 15.06.2034 maturity traded between the rates of 10.70% to 10.65% and 15.06.2035 changed hands at the rates of 10.79% to 10.70%.
On the external front, the LKR appreciated against the USD, closing at LKR 309.35/USD compared to LKR 309.37/USD recorded the previous day. Overnight liquidity in the banking system expanded to LKR 341.02Bn from LKR 322.93Bn recorded previously.
Courtesy: First Capital Research
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