The Colombo Bourse edged marginally lower today, reversing the buying momentum observed during early trading hours, which was driven by bargain hunting following yesterday’s decline.

However, market sentiment weakened in the latter half of the session due to profit-taking activities, reflecting investor concerns over uncertain economic conditions and prevailing global uncertainties.

Consequently, the ASPI declined marginally by 15 points to close at 22,298, while the S&P SL20 lost 13 points to settle at 6,149. JKH, RICH, CIC, SAMP and NDB were among the top negative contributors to the ASPI.

Meanwhile, participation from both HNW and retail investors remained subdued throughout the session. Daily turnover stood at LKR 2.3Bn, marking a decrease of 38.0% over the monthly average of LKR 3.7Bn.

Capital Goods sector led the daily turnover with a share of 29%, followed by the Banking, and Food Beverage & Tobacco sectors collectively contributing 27%. Foreign investors turned net buyers, posting a net inflow of LKR 50.1Mn.

BOND MARKET

Selling pressure drives yields higher across the curve

The market came under notable selling pressure today, pushing yields up across the curve by around 10–15bps. Although trading volumes recorded a modest pick-up compared to yesterday, overall activity levels remained moderate.

At the short end of the curve 01.07.2028 and 15.10.2028 traded at 9.95% and 10.00% respectively while 15.09.2029 and 15.10.2029 were seen trading at 10.20% and 10.30%. Moving ahead, 01.07.2030 also traded at 10.30% and 15.06.2034 changed hands between 10.32% to 10.42%.

Finally, 15.06.2035 traded at 11.45% while 15.08.2036 traded between 11.44% to 11.48%.  On the external front, the LKR depreciated against the USD, standing at LKR 326.92/USD, compared to LKR 325.62/USD seen previously. Overnight liquidity in the banking system contracted marginally to LKR 181.68Bn from LKR 183.53Bn recorded previously.

-First Capital Research-