Amid a volatile global environment, geopolitical uncertainties, and declining Asian markets, investors adopted a cautious stance as the Colombo Bourse recorded a marginal gain, losing the upward momentum observed during the early trading session.

The ASPI edged up by 6 points to close at 22,906, while the S&P SL20 gained 17 points to settle at 6,284. DIAL, JKH, HAYL, COMB, and HUNT emerged as the top positive contributors to the ASPI. Market breadth remained negative with 83 positive counters against 125 decliners.

Participation from both HNW and retail investors remained at moderate levels. Daily turnover amounted to LKR 2.8Bn, reflecting a 24.3% decline compared to the monthly average of LKR 3.8Bn. The Capital Goods sector led daily turnover, accounting for 38%, followed by the Banking and Diversified Financials sectors, which collectively contributed 28%. Foreign investors continued to remain net sellers, recording a net outflow of LKR 670.7Mn.

BOND MARKET

Geopolitical concerns weigh on market activity

Yesterday’s subdued momentum persisted through today’s trading session. Heightened geopolitical uncertainty, alongside the resulting uptick in oil prices, weighed on market activity, with both investor participation and trading volumes remaining constrained.

At the short end of the curve 15.02.2028 and 01.07.2028 traded at 9.65% and 9.75% respectively. Moving ahead, 15.09.2029 was seen trading at 9.95%. Finally, 01.07.2030 changed hands at 10.15%.

 On the external front, the LKR depreciated against the USD, standing at LKR 324.72/USD, compared to LKR 323.96/USD seen previously. Overnight liquidity in the banking system contracted to LKR 156.80Bn from LKR 253.75Bn recorded previously.

-First Capital Research-