The Colombo Stock Exchange sustained a week of intraday losses for the most part, with a slight turnaround at week’s end as the market exhibited positive momentum which resulted in both indices closing higher than the previous day.

The ASPI registered a minor gain of 11 points and closed at 21,417, whilst the S&P SL20 closed at 6,028, demonstrating a 9-point jump. The top positive contributors to the index were MELS, CDB, SIRA, HHL and DIAL.

Overall investor engagement remained subdued, of which HNW activity was particularly low, whereas retail participation appeared comparatively stronger at moderate levels. Today’s turnover stood at LKR 1.2Bn, which marks an 18.8% drop from the previous level.

Activity in the Capital Goods sector dominated turnover, contributing 39% of the total, followed by the Materials, and Banking sectors, which together accounted for 27%. Foreign investors remained net sellers, posting a net outflow of LKR 58.2Mn.

BOND MARKET

2028, 2034, 2036 and 2037 maturities experience buying interest

The secondary market yield curve recorded buying interest, particularly in the 2028, 2034, 2036, and 2037 maturities, while trading volumes and overall market activity remained moderate throughout the session.

Amongst the traded maturities, in the 2028 segment, 15.02.2028, 15.03.2028, 01.05.2028, 01.09.2028, 15.10.2028, and 15.12.2028, witnessed active trading, with maturities trading from 10.05% to 10.30%.

Further along the curve, the 15.10.2029 and 15.12.2029 maturities traded at 10.55% to 10.56%, while the 15.05.2030 and 01.08.2030 maturities changed hands in the range of 10.70% to 10.75%.

The 01.02.2031 maturity traded at 10.95%. Meanwhile, the 15.01.2033 maturity traded in the range of 11.30% to 11.36%, while the 15.10.2034 maturity traded between the range of 11.70% to11.80%.

At the longer end of the curve, both 15.08.2036 and 01.07.2037 maturities traded at 12.00%. On the external front, the LKR appreciated against the USD, standing at LKR 330.17/USD, compared to LKR 331.23/USD seen earlier. Market liquidity in the banking system contracted to LKR 278.51Bn from LKR 300.25Bn recorded previously.

-First Capital Research-