Following the confirmation of the US–Iran peace agreement, global equity markets experienced positive momentum while global oil prices declined

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Reflecting these favorable global developments, the Colombo Bourse closed in positive territory, reclaiming 22,000 level. The ASPI advanced by 743 points to close at 22,381, while the S&P SL20 gained 192 points to settle at 6,220.

Index-weighted counters like SAMP, COMB, JKH, MELS, and DIAL emerged as leading positive contributors to the ASPI.

HNW investor participation remained at average levels, whereas retail investor participation was notably elevated. Daily turnover stood at LKR 4.0Bn, marking an increase of 36.4% over the monthly average of LKR 2.9Bn.

Capital Goods sector led the daily turnover with a share of 15%, followed by the Banking, and Health Care Equipment & Services sectors collectively contributing 25%. Foreign investors remained net buyers, posting a net inflow of LKR 21.1Mn.

BOND MARKET

Buying momentum persists as global tensions ease

The secondary bond market commenced the week on a positive note, extending the buying momentum observed at the close of the previous week, as investor sentiment improved following encouraging developments surrounding tensions in the Middle East. 

Among the maturities traded today, in the 2028 segment, 15.02.2028, 15.03.2028, 01.07.2028, and 15.10.2028 maturities traded within the range of 11.00% to 10.90%.

Moving further along the curve, the 15.09.2029 and 15.12.2029 maturities changed hands within the range of 11.30% to 11.15%. In the 2030 segment, the 01.03.2030, 15.05.2030, and 01.08.2030 maturities traded within the range of 11.75% to 11.30%.

Further along the curve, the 15.12.2032 maturity traded between the rates of 11.83% to 11.75%, the 15.01.2033 maturity changed hands between the rates of 12.00% to 11.65%, and the 15.03.2035 maturity traded between the rates of 12.30% to 12.00%.

On the external front, the LKR depreciated against the USD, standing at LKR 336.19/USD, compared to LKR 333.39/USD seen earlier. Liquidity in the banking system contracted to LKR 39.36Bn from LKR 62.57Bn recorded previously.

-First Capital Research-

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