The Colombo Bourse closed on a negative note today, reversing its early gains as increased selling pressure in the second half of the session weighed on investor sentiment.

The ASPI declined by 27 points to close at 21,173, while the S&P SL20 fell by 3 points to close at 5,943. Market activity was supported by a large, negotiated crossing in United Motors Lanka (UML), while HNW investor participation remained strong. Retail participation remained broadly in line with yesterday's levels.

The main negative contributors to the ASPI were JKH, HNB, CINS, GRAN, and BREW. Daily turnover stood at LKR 2.5Bn, marking an increase of 41.9% over the monthly average of LKR 1.7Bn.

Retailing sector led the daily turnover with a share of 42%, followed by the Banking, and Capital Goods sectors collectively contributing 33%. Foreign investors turned net buyers, posting a net inflow of LKR 1,071.5Mn.

BOND MARKET

A silent wrap-up to the week

The secondary bond market yield curve witnessed a subdued trading session, with low activity and muted volumes, while the yield curve remained broadly unchanged. Participation from banks and primary dealers was limited.

Among the traded maturities, the 15.10.2028, 15.07.2029, and 15.09.2029 maturities changed hands at the rates of 10.75%, 11.15%, and 11.20%, respectively.

Meanwhile, the 01.08.2030 and 15.10.2030 maturities traded at the rate of 11.65%, while the 01.06.2033 and 01.11.2033 maturities traded at the rate of 12.20%.

The 15.06.2034 maturity changed hands at 12.25%. On the external front, the LKR slightly appreciated against the USD, standing at LKR 336.26/USD, compared to LKR 336.42/USD seen earlier. Overnight liquidity in the banking system expanded to LKR 163.07Bn from LKR 156.54Bn recorded previously.

-First Capital Research-