Amid global uncertainties surrounding the US–Iran peace talks and investor concerns over the potential negative economic impact on the Sri Lankan economy from escalating US–Iran tensions, the Colombo Bourse concluded the session in negative territory, declining marginally by 73 points to close at 22,567.

The S&P SL20 also edged down by 8 points to close at 6,206. BUKI, BREW, RIL, LION, and SAMP were the top negative contributors to the ASPI. Market sentiment remained mixed, with investors largely adopting a wait-and-see approach.

High-net-worth (HNW) investor participation was evident, driven by attractive buying opportunities at discounted prices, while retail investor activity remained subdued. Daily turnover stood at LKR 2.8Bn, marking a decrease of 25.2% over the monthly average of LKR 3.8Bn.

Food Beverage & Tobacco sector led the daily turnover with a share of 20%, followed by the Capital Goods, and Insurance sectors collectively contributing 25%. Foreign investors turned net buyers, posting a net inflow of LKR 3.4Mn.

BOND MARKET

Ultra-thin volumes grip secondary market, adding to the gloom

The secondary market remained largely dormant amid ultra-thin trading volumes, with overall sentiment remaining similar throughout the week, as the broader geopolitical backdrop continued to weigh on investor appetite. Activity stayed notably subdued, with only limited trades observed, concentrated at the short end of the curve.

Today’s trades comprised of the 15.12.2026 bond which changed hands at 8.70%, followed by the 01.05.2027 bond which traded at 8.89%. On the external front, the LKR depreciated against the USD, standing at LKR 316.78/USD, compared to LKR 316.46/USD seen yesterday. Liquidity in the banking system expanded to LKR 167.46Bn from LKR 151.01Bn recorded previously.

-First Capital Research-