The Colombo Bourse closed on a positive note today, with the ASPI gaining 198 points to end at 22,407, while the S&P SL20 advanced 61 points to close at 6,243.

Investor sentiment improved, driven by renewed buying interest. HNW participation remained at average levels, while retail participation was high. The main positive contributors to the ASPI were DIAL, JKH, HAYL, MELS, and DIPD. Daily turnover stood at LKR 2.7Bn, marking an increase of 5.1% over the monthly average of LKR 2.6Bn

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Materials sector led the daily turnover with a share of 23%, followed by the Capital Goods, and Diversified Financials sectors collectively contributing 32%. Foreign investors remained net sellers, posting a net outflow of LKR 50.3Mn.

BOND MARKET

Mixed sentiment continues to prevail in the secondary market

Secondary bond market sentiment remained mixed, largely in line with the previous session, with the yield curve broadly unchanged. Buying interest emerged in the long-tenor segment, while the shorter end of the curve witnessed some selling pressure ahead of tomorrow’s bond auction.

Trading activity was mainly concentrated among primary dealers and banking sector participants. In terms of market activity, the 15.03.2028 maturity traded at 10.60%, while the 15.11.2029 maturity changed hands at 10.95%.

Further along the curve, the 01.08.2030 maturity was seen trading at 11.22%. At the longer end, the 15.03.2035 maturity traded at 11.85%, while the 15.08.2036 maturity changed hands within the 12.01%-11.98% range.

On the external front, the LKR depreciated against the USD, standing at LKR 336.57/USD, compared to LKR 334.77/USD seen earlier. Liquidity in the banking system slightly expanded to LKR 65.36Bn from LKR 61.04Bn recorded previously. Popular maturities traded during the day:

15.03.2028: (Unchanged)

01.08.2030: (Unchanged)

15.08.2036: (+5bps)

-First Capital Research