The Colombo Bourse ended on a negative note today, with the ASPI declining 80 points to close at 21,149, while the S&P SL20 fell 15 points to close at 5,946.

The market witnessed thin trading volumes during the morning session, while increased month-end selling pressure weighed on investor sentiment and pushed indices lower by the close.

HNW investor participation remained low, while retail investor participation was at average levels. SPEN, CINS, COMB, ACL, and RICH were the major negative contributors to the ASPI. Daily turnover stood at LKR 1.1Bn, marking a decrease of 38.3% over the monthly average of LKR 1.8Bn.

Capital Goods sector led the daily turnover with a share of 36%, followed by the Banking, and Real Estate Management & Development sectors collectively contributing 28%. Foreign investors remained net sellers, posting a net outflow of LKR 0.7Mn.

BOND MARKET

Yield curve eases following the T-Bond auction

Following the T-Bond auction held today, the yields eased in the secondary market, adjusting the yield curve downward. The market saw buying interest with moderate trading volumes. At the T-Bond auction held today, the PDMO successfully raised the full amount offered.

Of the total accepted, LKR 90.0Bn was raised through the 2031 maturity, LKR 80.0Bn through the 2034 maturity, LKR 50.0Bn through the 2036 maturity, and LKR 30.0Bn through the 2037 maturity, at weighted average yields of 11.90%, 12.42%, and 12.91% and 13.01% respectively. Over the 2030 segment, 01.07.2030, 01.08.2030 and 15.10.2030 traded between 11.60%-11.55%.

Moving ahead, 01.02.2031and 15.10.2034 maturities traded within the range of 11.80%-11.70% and 12.40%-12.25% respectively. Additionally, 15.08.2036 and 01.07.2037 traded between 12.80%-12.65% and 12.90%-12.75% respectively.

On the external front, the LKR appreciated against the USD, standing at LKR 336.18/USD, compared to LKR 336.25/USD seen earlier. Overnight liquidity in the banking system expanded to LKR 195.00Bn from LKR 185.96Bn recorded previously.

Popular maturities:

15.10.2034 – unchanged

15.08.2036 – +28 bps

01.07.2037 - +13bps

-First Capital Research-