Amid heightened investor optimism surrounding the upcoming US–Iran peace talks scheduled to take place this weekend in Pakistan, together with the IMF staff-level agreement on the fifth and sixth reviews of Sri Lanka’s Extended Fund Facility, the Colombo bourse rebounded today, with the ASPI closing at 22,129, up by 284 points, and the S&P SL20 settling at 6,153, gaining 77 points.

JKH, MELS, DIAL, NDB, and PKME emerged as the top positive contributors to the ASPI, HNW investor participation was recorded at elevated levels and retail investor activity remained at average levels. Daily turnover stood at LKR 5.0Bn, marking an increase of 22.4% over the monthly average of LKR 4.1Bn.

Diversified Financials sector led the daily turnover with a share of 21%, followed by the Capital Goods, and Banking sectors collectively contributing 36%. Foreign investors remained net sellers, posting a net outflow of LKR 75.8Mn.

BOND MARKET

Market activity tapers ahead of the holiday season

The secondary market saw a lackluster session, as investor activity continued to taper off ahead of the upcoming long weekend and festive period. The yield curve remained broadly anchored, with limited movement observed across maturities, while volumes were distinctly light, reflecting the typical holiday-induced lull in market activity.

Noteworthy trades were scarce with 2029 and 2030 emerging as the only maturities that saw meaningful activity. Consequently, 15.06.2029 was seen trading at 9.95% while 01.07.2030 changed hands at 10.16%.  On the external front, the LKR depreciated against the USD, standing at LKR 315.55/USD compared to LKR 315.22/USD seen earlier.

Note: Kindly note that the figures relating to excess liquidity and CBSL holdings of government securities for 10th Apr-26 were not available at the time of publication of this document.

-First Capital Research-