The Colombo Bourse closed marginally lower today, with the ASPI declining by 7 points to close at 21,418, while the S&P SL20 fell 8 points to close at 5,989.

The market traded in positive territory during the early part of the session but erased its gains to end slightly lower as investors remained cautious amid ongoing geopolitical uncertainty.

HNW participation remained low, with retail participation at average levels. The main negative contributors to the ASPI were DIAL, HNB, CFIN, COMB, and BUKI. Daily turnover stood at LKR 1.2Bn, marking a decrease of 36.6% over the monthly average of LKR 1.9Bn.

Banking sector led the daily turnover with a share of 27%, followed by the Materials, and Capital Goods sectors collectively contributing 37%. Foreign investors remained net sellers, posting a net outflow of LKR 36.7Mn

BOND MARKET

Yield curve steady amid tepid secondary market activity

Secondary market withstood a lackluster trading session today, marked by low volumes while the yield curve remained broadly unchanged. Activity was largely concentrated in the 2030 segment, though the volumes traded appeared modest.

The 15.03.2030 maturity traded at 11.33%, the 01.07.2030 and 01.08.2030 maturities both traded at 11.50%, while the 15.10.2030 maturity traded at 11.60%, with yields broadly unchanged from previous levels.

Further along the yield curve, 01.11.2033 traded at 11.95%. Within the 2034 segment, 15.06.2034 and 15.10.2034 both changed hands at 12.10%. Finally, at the long end of the curve, 01.07.2037 was seen trading at 12.65%.

The PDMO concluded its weekly T-Bill auction today, raising LKR 120.0Bn, on par with the initial offer. The 3M T-Bill raised LKR 55.0Bn while the 6M and 12M raised LKR 35.0Bn and 30.0Bn respectively, all in line with the initial offer amounts

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The weighted average yields dipped across all three maturities. The weighted average yield of the 3M bill edged down by 8bps to 10.13% while that of the 6M and 12M bills edged down by 3bps and 1bps to stand at 10.27% and 10.20% respectively.

On the external front, the LKR depreciated marginally against the USD, standing at LKR 336.28/USD, compared to LKR 336.22/USD seen earlier. Overnight liquidity in the banking system expanded to LKR 157.19Bn from LKR 151.99Bn recorded previously.

Popular maturities traded:

01.08.2030

15.10.2030

-First Capital Research-