Today, the Colombo Bourse concluded on a positive note, supported by easing global oil prices and sustained foreign investor participation.

The ASPI advanced by 103 points to close at 21,270, while the S&P SL20 gained 26 points to settle at 5,972. CFIN, COMB, CARG, CTHR, and HAYL were the leading positive contributors to the ASPI.

Market activity reflected elevated participation from both retail and HNW investors. Daily turnover amounted to LKR 12.2Bn, representing a 443.5% increase over the monthly average of LKR 2.3Bn, primarily driven by the foreign investor-involved crossing of COCR, which accounted for 74% of total turnover.

The Diversified Financials sector dominated turnover with an 82% share, followed by the Retailing and Capital Goods sectors, which collectively contributed 11%. Meanwhile, foreign investors remained net sellers, recording a net outflow of LKR 7.9Bn.

BOND MARKET

Sentiment turns mixed, yield curve holds firm

The strong buying momentum and elevated trading volumes seen yesterday subsided today, as investor sentiment turned mixed and market activity moderated.

Consequently, the yield curve remained largely unchanged. At the short end of the yield curve, 15.02.2028 and 15.03.2028 traded between 10.45% to 10.50% while further along the curve 01.07.2030, 01.08.2030 and 15.10.2030 were seen changing hands within the 11.31%-11.38% range.

In the 2031 segment 01.02.2031, 15.03.2031 and 15.05.2031 all traded between 11.38% to 11.58%. Moving ahead, 15.01.2033 and 01.11.2033 changed hands at 11.92% and 12.00% respectively while 15.10.2034 traded higher at 12.12%.

Finally, at the long end of the curve 01.07.2037 was seen trading at 12.67%.  On the external front, the LKR appreciated against the USD, standing at LKR 335.60/USD, compared to LKR 335.73/USD seen earlier. Overnight liquidity in the banking system expanded to LKR 218.0Bn from LKR 165.38Bn recorded previously

Courtesy: First Capital Research