The Colombo Bourse closed in negative territory today, with the ASPI declining by 251 points to 21,760 and the S&P SL20 falling by 66 points to 6,032. Selling pressure persisted following the recent increase in interest rates, dampening investor sentiment.

HNW investors dominated market turnover, while retail participation remained average. The negative contributors to the ASPI were DIAL, COMB, MELS, HNB, and BREW. Daily turnover stood at LKR 2.8Bn, marking a decrease of 18.3% compared to the monthly average of LKR 3.4Bn.

Capital Goods sector led the daily turnover with a share of 18%, followed by the Materials, and Diversified Financials sectors collectively contributing 29%. Foreign investors remained net sellers, posting a net outflow of LKR 92.3Mn.

Lingering uncertainty weighs down on market sentiment

The secondary market remained shrouded in uncertainty as investors awaited further clarity on prevailing global headwinds and their spillover effects on the Sri Lankan economy.

Consequently, yields underwent a modest upward adjustment while trading volumes appeared moderate. At the short end of the curve 15.02.2028, 15.03.2028, 01.05.2028 and 01.07.2028 traded at 11.95%. Further ahead on the yield curve, 01.08.2030 traded at 12.30% while 15.06.2034 changed hands at 13.15%.

Finally, 15.03.2035 and 15.06.2035 were seen trading at 13.25% and 13.30% respectively. On the external front, the LKR depreciated against the USD, standing at LKR 334.61/USD, compared to LKR 332.16/USD seen earlier. Liquidity in the banking system expanded to LKR 121.94Bn from LKR 111.71Bn recorded previously.

-

First Capital Research