The Colombo Bourse closed on a mixed note today, with the ASPI declining by 20 points to close at 22,244, while the S&P SL20 edged up by 1 point to 6,207. Investor sentiment remained subdued amid a shortened trading session, following a delayed market opening due to a technical issue with the Central Depository System, which weighed on overall market activity.

Both HNW and retail participation remained low. The main negative contributors to the ASPI were HNB, RIL, DIAL, SAMP, and CARG. Daily turnover stood at LKR 1.1Bn, marking a decrease of 57.0% over the monthly average of LKR 2.5Bn.

Telecommunication sector led the daily turnover with a share of 23%, followed by the Food Beverage & Tobacco, and Utilities sectors collectively contributing 25%. Foreign investors remained net sellers, posting a net outflow of LKR 289.0Mn.

BOND MARKET

Foreign demand across targeted tenors boosts trading volumes

The secondary bond market was abuzz with activity today, as foreign demand for select tenors provided a significant boost to trading volumes. Selling interest was evident in the 2029 segment, with the 15.06.2029, 15.09.2029 and 15.10.2029 maturities trading in the 10.90%–11.00% range. In contrast, the 2030 segment witnessed buying interest, particularly from foreign investors, with the 15.01.2030 maturity trading between 11.45% and 11.37%.

Mixed activity was observed across the 2032 and 2033 tenors, with the 15.12.2032 and 01.11.2033 maturities changing hands at 11.65% and 11.70%, respectively. Meanwhile, the 15.03.2035 maturity also attracted foreign buying interest and traded at 11.80%. At the weekly Treasury bill auction, the Public Debt Management Office successfully raised the full initial offer of LKR 100.0Bn.

The weighted average yield on the 3M bill increased by 9bps to 10.23%, while the 6M bill also recorded a 9bps rise to 10.30%. Meanwhile, the weighted average yield on the 12M bill edged up by a modest 3bps to 10.20%. On the external front, the LKR appreciated against the USD, standing at LKR 336.17/USD, compared to LKR 336.66/USD seen earlier. Liquidity in the banking system expanded to LKR 89.83Bn from LKR 82.56Bn recorded previously.

Popular maturities traded during the day:

15.10.2030: +5bps

15.03.2035: -5bps

-First Capital Research