The Colombo Bourse edged higher today, supported by relatively low oil prices and positive movements in index-heavy counters, which helped the market recover from recent declines.

However, market volatility was evident throughout the session before the market ultimately closed higher, reflecting mixed investor sentiment amid continued volatility in global oil prices.

The ASPI increased by 33 points to close at 21,056, while the S&P SL20 rose by 4 points to close at 5,929. Top positive contributors to the ASPI were DIAL, MELS, HAYL, HAYC and CARS. Turnover remained below average, with HNW investors accounting for a significant share of activity, while retail investor participation continued to remain average.

Daily turnover stood at LKR 1.3Bn, marking a decrease of 43.1% over the monthly average of LKR 2.3Bn. Capital Goods sector led the daily turnover with a share of 27%, followed by the Banking, and Materials sectors collectively contributing 32%. Foreign investors remained net sellers, posting a net outflow of LKR 5.9Mn.

BOND MARKET

Yields dip on the back of modest buying

Modest buying dominated market sentiment today, prompting a downward adjustment of the yield curve. Market activity was primarily clustered around mid-tenors. Trading volumes appeared thin, reflecting limited overall activity. In the 2030 segment, 01.08.2030 and 15.10.2030 traded between 11.35% to 11.25%.

Moving ahead, 01.02.2031 traded between 11.40%-11.33% while 01.10.2032 and 15.12.2032 both changed hands from 11.65% to 11.60%. Finally, 01.11.2033 was seen trading between 11.90% to 11.82%.

On the external front, the LKR depreciated against the USD, standing at LKR 332.13/USD, compared to LKR 331.89/USD seen earlier. Market liquidity in the banking system expanded marginally to LKR 324.79Bn compared to LKR 317.84Bn recorded previously.

-First Capital Research-