Subdued selling edged the Colombo Bourse lower for another session as global macroeconomic uncertainties kept investors cautious.

The ASPI declined by 56 points to close at 19,927, whilst the S&P SL20 shed 25 points to end at 5,657. Blue-chip counters emerged as the leading negative contributors to the index, with COMB, CARS, HAYL, BUKI and JKH leading the losses.

Retail investor activity remained broadly muted, whilst HNW activity picked up, with a few crossings in RHTL accounting for a significant portion of the day’s turnover.

Despite the broader market weakness, turnover increased to LKR 1.5Bn, approximately 9.0% above the monthly average of LKR 1.3Bn. The Consumer Services sector accounted for the largest share of turnover at approximately 51%, followed by the Banking, and Capital Goods sectors, which jointly contributed 28%. Foreign investors remained net sellers, posting a net outflow of LKR 1.0Mn.

BOND MARKET

Secondary market sees moderate volumes amid limited buying

The secondary market witnessed buying interest across most maturities today, resulting in a slight downward movement in the yield curve.

However, trading volumes remained relatively low throughout the session. Among the trades recorded, in the 2030 segment, 15.05.2030 traded at 11.40%, 01.07.2030 at 11.50%, and 15.10.2030 at 11.60%.

In the 2031 segment, 01.02.2031 traded between 11.75% and 11.72%, while 01.12.2031 traded at 11.85%. Further along the curve, 15.12.2032 traded at 12.00%. In the 2033 segment, 15.01.2033 traded between 12.18% and 12.10%, while 01.06.2033 traded at 12.20%.

Finally, in the 2034 segment, 15.06.2034, 15.09.2034, and 15.10.2034 traded within the range of 12.35% and 12.45%. Today, the PDMO concluded its weekly T-Bill auction, raising LKR 80.6Bn, below the initial offer amount of LKR 100.0Bn.

For the 3M T-Bill, LKR 40.0Bn was initially offered, while LKR 70.4Bn was accepted. The weighted average yield rate (WAYR) increased by 2bps to 9.32%. For the 6M T-Bill, the PDMO accepted only LKR 3.9Bn against an offered amount of LKR 35.0Bn, with the WAYR remaining unchanged at 9.44%.

For the 12M T-Bill, LKR 6.3Bn 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 331.75/USD, compared to LKR 331.54/USD seen earlier. Market liquidity in the banking system contracted to LKR 379.1Bn compared to LKR 389.29Bn recorded previously.

-First Capital Research-