The Colombo Bourse closed in negative territory today, with the ASPI declining by 87 points to 22,178 and the S&P SL20 falling by 20 points to 6,131.

nvestor sentiment remained cautious amid the continued impact of the recent interest rates hike and prevailing geopolitical uncertainties, prompting a wait-and-see approach among market participants.

Nevertheless, both HNW and retail participation remained high during the session. The negative contributors to the ASPI were JKH, MELS, LOLC, DOCK and BUKI. Daily turnover stood at LKR 2.0Bn, marking a decrease of 43.0% compared to the monthly average of LKR 3.5Bn.

Capital Goods sector led the daily turnover with a share of 28%, followed by the Materials, and Food Beverage & Tobacco sectors collectively contributing 32%. Foreign investors turned net buyers, posting a net inflow of LKR 73.8Mn.

BOND MARKET

Yield curve holds firm amid mixed investor sentiment

The secondary bond market withstood a quiet day amid thin trading volumes and limited investor activity. Contrary to yesterday’s modest selling pressure, investors showcased a mixed stance today prompting the yield curve to remain largely anchored.

At the short end of the yield curve, 15.09.2027 traded at 11.00% while 01.07.2028 changed hands at 11.50%. Moving ahead, 15.09.2029 and 01.03.2030 were seen trading at 12.00% and 12.10% respectively.

Finally, 15.06.2034 traded at 13.12%. On the external front, the LKR depreciated against the USD, standing at LKR 331.58/USD, compared to LKR 329.22/USD seen earlier. Overnight liquidity in the banking system expanded to LKR 103.56Bn from LKR 102.46Bn recorded previously.

-First Capital Research-