The Colombo Bourse closed in negative territory today, with the ASPI declining by 147 points to close at 22,263, while the S&P SL20 fell 42 points to end at 6,205. Investor sentiment weakened amid renewed geopolitical uncertainty, which triggered selling pressure across selected counters.

HNW and retail participation remained at average levels. The main negative contributors to the ASPI were DIAL, JKH, WIND, CIC, and HAYL. Daily turnover stood at LKR 1.8Bn, marking a decrease of 32.4% over the monthly average of LKR 2.6Bn.

Utilities sector led the daily turnover with a share of 28%, followed by the Capital Goods, and Retailing sectors collectively contributing 28%. Foreign investors turned net sellers, posting a net outflow of LKR 466.1Mn.

BOND MARKET

Secondary market commences the week on a quiet note

The secondary bond market saw subdued trading activity and low volumes, with the yield curve remaining broadly stable across the curve. Trading was mainly concentrated among primary dealers and participants from the banking sector.

Among the actively traded maturities, the 01.08.2030 and 15.10.2030 maturities traded within the range of 11.30% to 11.45%. Foreign investor interest was evident in the 2035 and 2036 maturities, with the 15.03.2035 bond trading in the range of 11.80% to 11.90%, whilst the 15.08.2036 bond traded between the range of 11.90% to 11.95%.

According to the Department of Census and Statistics, the YoY headline inflation, as measured by the CCPI, increased to 6.8% in June 2026 from 5.5% in May 2026. YoY food inflation accelerated to 3.6% in June 2026 from 0.9% in the previous month, while non-food inflation rose to 8.4% from 7.8% in May 2026.

 On the external front, the LKR appreciated against the USD, standing at LKR 336.66/USD, compared to LKR 337.04/USD seen earlier. Liquidity in the banking system expanded to LKR 82.56Bn from LKR 61.62Bn recorded previously.

Popular maturities traded during the day:

01.08.2030: +7bps      

15.10.2030: -3bps

-First Capital Research