The Colombo Bourse resumed trading after the holidays on a positive note, sustaining its momentum through to the close.

The ASPI gained 36 points to close at 21,316, while the S&P SL20 advanced 11 points to close at 6,005. Both indices moved upward from the outset, with investor interest largely driven by bargain buying following several consecutive sessions of market declines.

The top positive contributors to the index were CARG, HAYL, NTB, HAYC and COMB. Today’s activity was led by the HNW segment, with activity noted in WIND and PKME, whereas the retail segment’s attention was concentrated towards trading counters.

Turnover for the day stood at LKR 2.2Bn, which is 38.1% below the monthly average of LKR 3.6Bn. Activity in the Utilities sector dominated turnover, contributing 23% of the total, followed by the Capital Goods, and Banking sectors, which together accounted for 31%. Foreign investors turned net buyers, posting a net inflow of LKR 26.0Mn.

BOND MARKET

Buying interest nudges yields modestly lower

The secondary market remained buoyant, with strong investor participation and elevated trading volumes. Buying interest continued to underpin market activity, driving a modest downward shift in the yield curve.

At the short end of the curve, 15.09.2027 traded at 9.70% while 01.05.2028 and 01.09.2028 changed hands between 10.10%-10.00%. Moving ahead, 15.12.2029 was seen trading between 10.35%-10.25%.

In the 2030 segment, 01.03.2030 and 15.05.2030 both traded between 10.45%-10.35% while 01.08.2030 and 15.10.2030 traded within the 10.60%-10.45% range. Further along the curve, 01.02.2031 traded from 10.65% to 10.55% while 01.12.2031 traded higher at 10.80%.

Moreover, 15.12.2032 changed hands at 11.05% while the 01.11.2033 maturity traded from 11.45%-11.30%. At the belly end of the curve, 15.10.2035 traded between 11.65% to 11.52%. Finally, 15.08.2036 changed hands from 11.88% to 11.80%.

On the external front, the LKR appreciated against the USD, standing at LKR 328.61/USD, compared to LKR 329.00/USD seen earlier. Market liquidity in the banking system contracted to LKR 338.13Bn from LKR 347.87Bn recorded previously.

Popular maturities:

01.08.2030: -10bps

15.10.2030: -10bps

01.02.2031: -5bps

15.08.2036: -5bps

-First Capital Research