The Colombo Bourse closed in negative territory today, with the ASPI declining by 341 points to 21,403 and the S&P SL20 falling by 56 points to 5,968.

Investor sentiment remained subdued as the concerns that weighed on the market last week, including the recent increase in interest rates, continued to dampen risk appetite.

HNW participation remained high, supported by several notable crossings led by JKH, while retail participation remained at average levels. The negative contributors to the ASPI were MELS, BUKI, HAYL, SAMP, and LOLC.

Daily turnover stood at LKR 2.6Bn, marking a decrease of 22.4% over the monthly average of LKR 3.4Bn. Capital Goods sector led the daily turnover with a share of 37%, followed by the Banking, and Food Beverage & Tobacco sectors collectively contributing 31%. Foreign investors turned net sellers, posting a net outflow of LKR 54.1Mn.

BOND MARKET

Market remains on the sidelines awaiting further clarity

The secondary market commenced the week on a cautious note, with investors largely remaining on the sidelines, resulting in low trading activity and subdued volumes.

Market participants adopted a wait-and-see approach ahead of this week's T-Bill and T-Bond auctions, seeking greater clarity amid prevailing external uncertainties.

Despite the muted market conditions, selective interest was observed across a few maturities. At the short end, the 15.02.2028 traded at 11.75%, while the 15.06.2029 maturity changed hands at 12.05%.

Further along the curve, the 01.08.2030 and 15.10.2030 bonds witnessed activity within the 12.12% to 12.30% range. The PDMO announced a T-Bond auction, scheduled to be held on 11-May-2026, at which a total of LKR 150.0Bn is expected to be raised across 2030, 2032 and 2037 maturities.

On the external front, the LKR depreciated against the USD, standing at LKR 336.39/USD, compared to LKR 336.16/USD seen earlier. Liquidity in the banking system contracted to LKR 73.25Bn from LKR 115.04Bn recorded previously.

-First Capital Research-