The Colombo bourse commenced the day on a mildly positive note, yet couldn't sustain the momentum as both the indexes closed in red to end the day.

Despite the fall in global oil prices today, investors remained cautious and selling pressure continued to weigh on the market. Both the ASPI and S&P SL20 indices closed in negative territory, with the ASPI shedding 65 points to close at 21,280, while the S&P SL20 index fell by 15 points to close at 5,995. CARG, DIAL, COMB, BREW and CDB emerged as the top negative contributors to the index.

Daily turnover stood at LKR 796.9Mn, marking a decrease of 78.1% over the monthly average of LKR 3.6Bn. Capital Goods sector led the daily turnover with a share of 19%, followed by the Materials and Banking sectors collectively contributing 28%. Foreign investors remained net sellers, posting a net outflow of LKR 4.1Mn.

BOND MARKET

T-bond auction fully subscribed, secondary market buying gains momentum

Ahead of today’s T-Bond auction, the secondary market saw notable buying interest, particularly in the 2030 and 2036 maturities. Along with the elevated activity and moderate trading volumes observed today, the yield curve shifted downward.

Among the actively traded maturities, the 15.09.2029 bond traded within the range of 10.25%–10.15%. In the 2030 segment, the 01.03.2030, 01.08.2030, and 15.10.2030 maturities traded between 10.75% and 10.50%.

Meanwhile, the 01.02.2031 maturity changed hands between 10.80% and 10.50%. Finally, the 15.08.2036 maturity traded in the 12.00%–11.85% range. At the T-Bond auction held today, the PDMO successfully raised the full amount offered.

Of the total accepted, LKR 30.0Bn was raised through the 2030 maturity and LKR 20.0Bn through the 2035 maturity at weighted average yields of 10.54% and 11.70% respectively. On the external front, the LKR appreciated against the USD, standing at LKR 329.00/USD, compared to LKR 329.45/USD seen earlier. Market liquidity in the banking system contracted to LKR 322.87Bn from LKR 333.21Bn recorded previously.

Popular maturities:

01.08.2030: -15bps

15.10.2030: -15bps

15.08.2036: -10bps

-First Capital Research-