The Colombo Bourse remained subdued today, as investors largely stayed on the sidelines following yesterday’s escalation in Middle East tension and rising global oil prices.

Investor sentiment was also affected by concerns over the potential impact of rising oil prices on interest rates, with investors adopting a wait-and-see approach during the session today.

The ASPI dropped 76 points to close at 21,466, while the S&P SL20 fell 21 points to close at 6,034, reflecting the broader negative sentiment.

Turnover fell below LKR 1.0Bn marking the first time since 25th August 2026 that daily turnover dropped below this level. Retail participation was extremely low, while HNW participation remained thin.

Daily turnover stood at LKR 972.2Mn, marking a decrease of 63.8% over the monthly average of LKR 2.7Bn. Capital Goods sector led the daily turnover with a share of 29%, followed by the Diversified Financials, and Banking sectors collectively contributing 29%. Foreign investors turned net sellers, posting a net outflow of LKR 71.3Mn.

BOND MARKET

Mixed sentiment persists; yield curve remains anchored

Investor sentiment remained mixed, prompting the yield curve to stay broadly anchored while trading volumes appeared moderate. The PDMO concluded its weekly T-Bill auction raising a total of LKR 80.0Bn, on par with the initial offer.

The weighted average yield of the 3M bill edged higher by 7bps and stood at 9.03% while that of the 6M and 12M bills eased by 3bps and 4bps respectively, to stand at 9.24% and 9.77%.

In the 2028 segment, 15.03.2028, 01.07.2028, 15.10.2028 and 15.12.2028 traded between 10.10% to 10.20%. Further along the curve 15.06.2029 and 15.12.2029 traded at 10.40% and 10.50% respectively while 01.08.2030 changed hands at 10.70%.

Moreover, 01.02.3031 traded at 10.80% while 01.11.2033 was seen trading between 11.80% to 11.76%. Finally, 15.10.2034 traded at 11.90% while 15.08.2036 traded higher at 11.93%.

On the external front, the LKR depreciated against the USD, standing at LKR 328.77/USD, compared to LKR 328.21/USD seen earlier. Market liquidity in the banking system remained broadly stable at LKR 363.14Bn compared to LKR 363.31Bn recorded previously.

-First Capital Research-