The Colombo Bourse closed in negative territory today, with the ASPI declining by 98 points to close at 22,081, while the S&P SL20 fell by 27 points to 6,167.

Investor sentiment remained subdued amid dull market activity, with foreign selling activity and crossing transactions contributing to market turnover. Compared to last week, HNW participation remained low, while retail participation increased.

The main negative contributors to the ASPI were CINS, HNB, RIL, DIAL, and CFIN. Daily turnover stood at LKR 1.4Bn, marking a decrease of 37.6% over the monthly average of LKR 2.2Bn.

Utilities sector led the daily turnover with a share of 28%, followed by the Capital Goods, and Banking sectors collectively contributing 26%. Foreign investors remained net sellers, posting a net outflow of LKR 315.8Mn.

BOND MARKET

Week opens on subdued secondary market movement

The secondary market witnessed an overall easing in activity levels as it opened this week on a dull tone, with thin volumes being traded, leaving the overall yield curve unchanged.

The trades that occurred today were confined to a few maturities located at the mid end of the curve, starting off with the 01.08.2030 maturity which traded at 11.25%.

Moving on to the 2033 segment, the 15.01.2033 bond traded at 11.60%, whilst the 01.11.2033 bond changed hands at 11.66%. Furthermore, the 2035 segment witnessed some activity, with the 15.03.2035 bond trading at 11.70%, and the 15.06.2035 bond trading at 11.75%.

On the external front, the LKR appreciated against the USD, standing at LKR 335.26/USD, compared to LKR 336.03/USD seen earlier. Liquidity in the banking system expanded to LKR 132.29Bn from LKR 128.47Bn recorded previously.

-First Capital Research-