The Colombo Bourse closed in negative territory today, with the ASPI declining by 22 points to 22,222, while the S&P SL20 slipped 2 points to 6,205.

After a positive start, the market reversed course as profit-taking emerged during the latter half of the session, while significant foreign selling through large, negotiated crossings, particularly in HHL and WIND, weighed on sentiment.

Both HNW and retail participation remained low. The main negative contributors to the ASPI were SPEN, SAMP, DFCC, CTC, and CINS. Daily turnover stood at LKR 1.5Bn, marking a decrease of 31.1% over the monthly average of LKR 2.2Bn.

Capital Goods sector led the daily turnover with a share of 55%, followed by the Banking, and Food Beverage & Tobacco sectors collectively contributing 15%. Foreign investors remained net sellers, posting a net outflow of LKR 774.2Mn.

BOND MARKET

Volumes surge as buying sentiment continues

The secondary market extended yesterday's positive momentum into today's session, with trading activity remaining robust amid high volumes and strong participation from both local and foreign investors.

Buying interest dominated the market, resulting in a broad-based softening of yields across the curve. Today’s trades were visible all throughout the curve, starting off with the 15.10.2027 bond at the short end, which changed hands at 10.50%.

Within the 2028 segment, the 15.03.2028, 01.05.2028 and 01.09.2028 bonds traded from 10.60% to 10.65%. Moving along, the 15.10.2029 and 15.12.2029 maturities traded from 11.05% to 10.97%. At the belly end, the 2030 segment recorded some activity, with the 15.05.2030 bond trading at 11.15%, 01.08.2030 and 15.10.2030 maturities trading from 11.35% to 11.23%.

Moving further along, the 01.10.2032 and 15.12.2032 bonds changed hands from 11.65% to 11.55%, followed by the 01.11.2033 maturity, which was seen trading at 11.65%. Nearing the end of the belly, the 15.03.2035 and 15.06.2035 bonds transacted from 11.75% to 11.70% and 11.80%, respectively. Lastly, approaching the long end of the curve, the 15.08.2036 maturity traded at 11.90%.

On the external front, the LKR depreciated against the USD, standing at LKR 336.29/USD, compared to LKR 336.17/USD seen earlier. Liquidity in the banking system contracted to LKR 81.20Bn from LKR 89.83Bn recorded previously.

Popular maturities traded during the day:

15.10.2030: -10bps

15.03.2035: -7bps

-First Capital Research-