Amid the successful disbursement of Sri Lanka’s 5th and 6th Extended Fund Facility tranches by the IMF, alongside the easing of Middle East tensions within the global backdrop, the Colombo Bourse closed in positive territory today.

However, the ASPI remained largely stagnant throughout the session despite recording an uptick during the early hours of trading. The ASPI gained 112 points to close at 22,311, while the S&P SL20 advanced by 28 points to settle at 6,159.

COMB, DIAL, MELS, AEL, and HHL emerged as the top positive contributors to the ASPI. HNW investor participation remained notable, with several crossings accounting for 64.8% of total turnover, while retail investor participation was observed at an average level.

Daily turnover amounted to LKR 7.4Bn, reflecting an increase of 114.6% compared to the monthly average of LKR 3.4Bn. The Diversified Financials sector led daily turnover with a contribution of 53%, followed by the Insurance and Banking sectors, which collectively accounted for 27%.

HNBF dominated overall turnover, contributing 49.9% of total turnover. Meanwhile, foreign investors turned net sellers, recording a net outflow of LKR 1.2Bn.

BOND MARKET

Mild buying emerges amid moderate volumes

Today, the secondary market saw modest buying interest, putting downward pressure on the yield curve, while overall trading volumes remained subdued.

Among the maturities that were traded 01.03.2030 and 01.08.2030 traded between 12.00% to 11.70%. Further along the curve, 15.12.2032 and 15.01.2033 changed hands between 12.40% to 12.32%.

Finally, 15.03.2035 was seen trading between 13.00% to 12.75%.  On the external front, the LKR depreciated against the USD, standing at LKR 327.82/USD, compared to LKR 323.02/USD seen yesterday.

Overnight liquidity in the banking system contracted to LKR 92.15Bn from LKR 126.70Bn recorded previously.

-First Capital Research-