The Colombo Bourse continued to showcase the weak investor sentiment, with the ASPI falling below 20,000 level today.

Rising global oil prices resulting from the escalations in the Middle East, coupled with the margin calls that led to selling pressure, weighed on the negativity.

The ASPI dropped by 281 points to close at 19,796. Moreover, the S&P SL20 closed at 5,676, shedding 54 points. DIAL, CARS, DIST, COMB, and TKYO were the top negative contributors to the ASPI.

Both retail and HNW investors remained active, with certain off-board transactions observed predominantly in DIAL, DIMO and JKH.

Turnover stood at approximately LKR 1.9Bn, up by 33.0% over the monthly average of LKR 1.4Bn. Capital Goods sector led the daily turnover with a share of 21%, followed by the Telecommunication Services and Banking sectors collectively contributing 27%. Foreign investors turned net sellers, posting a net outflow of LKR 4.9Mn.

BOND MARKET

Secondary Market Remains Subdued

The secondary market yield curve remained stable as investors maintained a cautious stance, largely staying on the sidelines. Trading activity remained subdued throughout the day, with limited interest in longer-dated maturities, while the 2029 maturities attracted some interest.

Among the actively traded maturities, the 15.06.2029, 15.09.2029 and 15.10.2029 maturities traded within a yield range of 10.95%–11.05%. Further along the curve, the 15.10.2030 maturity traded at 11.40%, followed by the 15.12.2031 maturity at 11.70% and the 15.01.2033 maturity at 11.90%.

Today, the PDMO concluded its weekly T-Bill auction, raising LKR 66.1Bn, below the initial offer amount of LKR 90.0Bn. For the 3M T-Bill, LKR 40.0Bn was initially offered, while LKR 40.2Bn was accepted. The weighted average yield rate (WAYR) increased by 4bps to 9.30%.

For the 6M T-Bill, the PDMO accepted LKR 8.5Bn against an offered amount of LKR 30.0Bn, with the WAYR remaining unchanged at 9.44%. For the 12M T-Bill, LKR 17.5Bn was accepted, which was below the offered amount, while the WAYR remained unchanged at 9.95%.

On the external front, the LKR marginally depreciated against the USD, standing at LKR 331.05/USD, compared to LKR 330.98/USD seen earlier. Market liquidity in the banking system slightly expanded to LKR 414.63Bn compared to LKR 400.82Bn recorded previously.

-First Capital Research