Amid heightened investor optimism surrounding US–Iran peace negotiations, following Iran’s confirmation that the US had responded to its latest proposal, global capital markets showed positive momentum, which in turn supported the Colombo Bourse to close in positive territory.

The ASPI increased by 145 points to close at 22,695, while the S&P SL20 gained 37 points to settle at 6,245. NDB, DIAL, MELS, DOCK and HARI emerged as the top positive contributors to turnover.

HNW participation was notably elevated, with crossings accounting for 57.8% of total turnover, while retail investor participation remained subdued. Nevertheless, overall market sentiment was positive.

Daily turnover stood at LKR 4.8Bn, reflecting an increase of 31.7% compared to the monthly average of LKR 3.7Bn. The Food, Beverage & Tobacco sector led turnover with a 56% share, followed by the Banking and Capital Goods sectors, which collectively contributed 23%.

CTC dominated total turnover, recording LKR 2.4Bn and accounting for 49.7% of the total turnover. Foreign investors remained net sellers, registering a net outflow of LKR 2.5Bn, with CTC accounting for the highest foreign outflow of LKR 2.4Bn.

BOND MARKET

Quiet start to the week as yields remain steady

The secondary bond market began the week on a quiet note, with low volumes and subdued activity. The secondary market yield curve remained broadly unchanged.

Among the traded maturities, the 01.03.2030 tenor traded in the range of 10.05% to 10.10%, while the 01.07.2030 maturity changed hands between 10.20% to 10.25%.

Meanwhile, the 01.06.2033 and 15.06.2035 maturities traded at the rates of 11.05% and 11.27%, respectively. On the external front, the LKR depreciated against the USD, standing at LKR 319.93/USD, compared to LKR 319.35/USD seen yesterday. Overnight liquidity in the banking system expanded to LKR 226.55Bn from LKR 218.70Bn recorded previously.

-First Capital Research-