The Colombo Bourse came under selling pressure today, driven by profit-taking following the previous sessions’ gains and selling in index-heavy counters such as LOLC and HNB.

The market was predominantly retail-driven, although overall investor activity remained subdued. The ASPI dropped 125 points to close at 20,142, while the S&P SL20 fell 28 points to close at 5,746.

The top negative contributors to the ASPI remained HNB, LOLC, GREG, DIAL and LAMB. Turnover failed to cross the LKR 1Bn mark, reflecting relatively weak market participation.

Daily turnover stood at LKR 959Mn, marking a decrease of 32.4% over the monthly average of LKR 1.4Bn. Banking sector led the daily turnover with a share of 19%, followed by the Diversified Financials, and Capital Goods sectors collectively contributing 29%. Foreign investors remained net sellers, posting a net outflow of LKR 72.3Mn.

BOND MARKET

Tepid trading amidst overall selling interest in the secondary market

The secondary market concluded the trading session for today on the back of moderate volumes as activity levels were limited. The market saw mild selling sentiment kicking in, although the yield curve stood largely unchanged.

Amongst the traded maturities, within the 2030 segment, the 01.03.2030 and 01.07.2030 bonds were seen trading from 11.45% to 11.52%. Moving along the curve, the 15.10.2034 bond traded within a narrow band from 12.62% to 12.64%.

On the external front, the LKR depreciated against the USD, standing at LKR 332.61/USD, compared to LKR 332.49/USD seen earlier. Market liquidity in the banking system expanded to LKR 392.68Bn compared to LKR 387.34Bn seen previously.

-First Capital Research-