The Colombo Stock Exchange began the week on a positive note amidst moderate activity levels, resulting in a subdued market turnover. The ASPI gained 23 points to close at 21,339, while the S&P SL20 advanced 4 points to close at 6,010.

The index moved up at the open and succeeded in sustaining the positive momentum through to the close, despite an emergence of volatility and weakened sentiment towards the latter part of the session.

The top positive contributors to the index were BIL, CARS, WIND, JKH and DFCC. Retail investor activity was the main driver of today’s activity, whereas the HNW segment appeared somewhat muted.

Turnover for the day stood at LKR 1.0Bn, which is 71.5% below the monthly average of LKR 3.6Bn. Activity in the Capital Goods sector dominated turnover, contributing 30% of the total, followed by the Food, Beverage & Tobacco, and Diversified Financials sectors, which together accounted for 31%. Foreign investors remained net buyers, posting a net inflow of LKR 18.7Mn.

BOND MARKET

Mixed signals in the secondary market

The secondary market signaled a mixed sentiment today, amidst moderate trading volumes and limited market activity. The yield curve remained anchored compared to the closure of previous week. Over the 2028 segment, 15.12.2028 traded at 10.10%.

Moving ahead, 01.08.2030 and 15.10.2030 traded within the range of 10.45% - 10.55%, while 01.02.2031 changed hands at 10.60%. To the belly-end of the curve, 15.10.2034 traded between 11.55% - 11.45% and 15.03.2035 was dealt at 11.60%. Towards the long-end, 15.08.2036 changed hands between 11.80% - 11.75% and 01.07.2037 was traded within the range of 11.92% - 11.77%.

On the external front, the LKR appreciated against the USD, standing at LKR 328.01/USD, compared to LKR 328.61/USD seen earlier. Market liquidity in the banking system expanded to LKR 347.33Bn from LKR 338.13Bn recorded previously.

Popular maturities:

15.10.2030: unchanged

15.10.2034: unchanged

15.03.2035: unchanged

15.08.2036: unchanged

01.07.2037: unchanged

First Capital Research