The Colombo Bourse remained under pressure today, with the market experiencing volatility before entering a sustained downward trend.

The ASPI fell 30 points to close at 21,037, while the S&P SL20 declined by 2 points to finish 5,941. Top negative contributors to the ASPI were DIAL, COMB, CCS, CINS and DIST.

Turnover failed to cross the LKR 1.0Bn mark, reflecting subdued market activity, as both retail and HNW participation remained low.

Retail investors largely adopted a wait-and-see approach ahead of the upcoming policy meeting, contributed to the subdued activity and continued downward trend in the market.

Daily turnover stood at LKR 0.8Bn, marking a decrease of 63.8% over the monthly average of LKR 2.3Bn. Banking sector led the daily turnover with a share of 30%, followed by the Diversified Financials, and Materials sectors collectively contributing 35%. Foreign investors remained net sellers, posting a net outflow of LKR 193.3Mn. 

BOND MARKET

Secondary a market retreats as activity levels stay subdued

The secondary market witnessed a subdued trading session that comprised of lower-than-average levels of activity, mainly noted at the belly end of the curve.

Among the traded maturities, within the 2030 category, the 01.08.2030 maturity traded from 11.12% to 11.15%, followed by the 15.10.2030 maturity, which traded from 11.22% to 11.30%.

Moving along the yield curve, the 01.02.2031 bond transacted from 11.35% to 11.25%, and lastly, the 15.12.2032 maturity changed hands at a yield of 11.70%.

On the external front, the LKR depreciated against the USD, standing at LKR 330.35/USD, compared to LKR 329.02/USD seen earlier. Market liquidity in the banking system expanded to LKR 370.92Bn compared to LKR 354.06Bn recorded previously.

-First Capital Research-