The Colombo Bourse closed in negative territory today, with the ASPI declining by 197 points to close at 21,208, while the S&P SL20 fell 56 points to close at 5,943.

Investor sentiment remained subdued amid ongoing geopolitical tensions in the Middle East, weighing on market confidence. HNW investor participation remained active, supported by several negotiated crossings, while retail participation was at average levels.

The main negative contributors to the ASPI were DIAL, COMB, RICH, JKH, and CARS. Daily turnover stood at LKR 2.6Bn, marking an increase of 60.1% over the monthly average of LKR 1.6Bn.

Food & Staples Retailing sector led the daily turnover with a share of 43%, followed by the Food Beverage & Tobacco, and Capital Goods sectors collectively contributing 27%. Foreign investors turned net buyers, posting a net inflow of LKR 23.5Mn.

BOND MARKET

Muted Monday for the secondary market

The week opened on a dull note in the secondary market, weighing on cautious investor sentiment resulting from escalations in the Middle East. Trading volumes were insignificant, with the yields broadly remaining unchanged compared to the previous week’s closure.

Among the traded maturities, both 15.12.2032 and 15.01.2033 maturities traded at 12.00%. Additionally, the Central Bank of Sri Lanka is to announce the 4th Monetary Policy Decision for 2026 during this week, on 22nd July 2026.

On the external front, the LKR slightly appreciated against the USD, standing at LKR 336.23/USD, compared to LKR 336.31/USD seen earlier. Overnight liquidity in the banking system marginally expanded to LKR 168.13Bn from LKR 167.97Bn recorded previously.

Courtesy: First Capital Research