The Colombo Bourse ended on a positive note today, with the ASPI gaining 85 points to close at 21,167, while the S&P SL20 Index increased by 8 points to close at 5,945.

Easing concerns over global energy prices and renewed buying interest in selected blue-chip counters, lifted the market during the session.

HNW participation remained high, while retail participation was at average levels. Main positive contributors to the ASPI were CARG, DOCK, GRAN, RIL, and MELS.

Daily turnover stood at LKR 8.5Bn, marking an increase of 337.8% over the monthly average of LKR 1.9Bn. Food & Staples Retailing sector led the daily turnover with a share of 48%, followed by the Capital Goods, and Diversified Financials sectors collectively contributing 40%. Foreign investors remained net sellers, posting a net outflow of LKR 4.9Bn.

BOND MARKET

T-Bill auction yields ease across the board

The secondary market witnessed strong buying interest, resulting in a downward shift in yields across the curve amid elevated trading activity and volumes. Market participants primarily focused on the 2030 and 2031 maturities.

Driven by robust buying interest, the 15.10.2029 and 15.12.2029 maturities traded within the 10.95% to 11.00% range. Meanwhile, the 01.03.2030, 15.05.2030, 01.07.2030, 01.08.2030, and 15.10.2030 maturities changed hands between 11.10% and 11.40%.

The 01.12.2031 maturity was traded at 11.40%. In the 2032 segment, the 01.07.2032 and 15.12.2032 maturities traded within the 11.85% to 11.90% range. Further along the yield curve, the 15.01.2033 maturity traded at 12.00%, while the 15.10.2034, 15.08.2036, and 01.07.2037 maturities were traded at 12.15%, 12.60%, and 12.70%, respectively.

Moreover, the PDMO concluded its weekly T-Bill auction, successfully raising the full initial offer of LKR 140.0Bn. The 3M and 6M bills raised LKR 72.8Bn and LKR 50.0Bn respectively. The 12M bill raised LKR 17.2Bn, lower than the initial offer of LKR 35.0Bn. The weighted average yields of the 3M, 6M and 12M bills adjusted down by 9bps, 22bps and 1bp to 9.77%, 9.99% and 10.19% respectively. On the external front, the LKR slightly depreciated against the USD, standing at LKR 335.73/USD, compared to LKR 335.72/USD seen earlier. Overnight liquidity in the banking system contracted to LKR 165.38Bn from LKR 204.74Bn recorded previously.

-First Capital Research