Colombo Bourse moved up in the morning session, yet fears of margin calls triggered panic selling among retail investors, while fuel shortage and concerns over power cuts further weighed on overall sentiment dragging the indices down at the latter part of the day, as investors stay cautious on rising global uncertainty.
The ASPI declined by 521 points, closing at 20,418, while S&P SL20 Index closed at 5,761, down 124 points. Market breadth continued to be negative with 227 counters declining during the session, led by COMB, HAYL, DOCK, NDB and AEL, while only 34 counters recorded gains during the day.
HNW participation remained subdued, while retail activity was elevated amid panic-driven selling. Daily turnover stood at LKR 5.0Bn, marking a decrease of 1.4% over the monthly average of LKR 5.1Bn.
Capital Goods sector led the daily turnover with a share of 32%, followed by the Banking, and Diversified Financials sectors collectively contributing 25%. Foreign investors turned net sellers, posting a net outflow of LKR 104.8Mn, bringing the cumulative outflow to LKR 17.2Bn.
BOND MARKET
Secondary bond market sustains yesterday’s selling stance
The secondary market sustained yesterday’s selling momentum prompting an upward adjustment in the yield curve while trading volumes remained moderate. Activity was evident within the 2027 segment with 01.05.2027 and 15.09.2027 trading at 8.35% and 8.50% respectively.
Moving ahead, 15.03.2031 was seen trading at 10.00% while 15.05.2031 traded higher at 10.15%. Finally, 15.06.2034 changed hands between 10.82% to 10.85%. On the external front, the LKR depreciated against the USD, closing at LKR 311.38/USD compared to LKR 311.13/USD recorded the previous day. Liquidity in the banking system expanded marginally to LKR 348.2Bn from LKR 335.5Bn recorded previously.
-First Capital Research-
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