Turnover drops below LKR 600 million while government securities yields rise ahead of the Central Bank’s policy decision.
Share prices in Colombo edged lower on Monday in thin trading, while government bond yields rose across most maturities as the market waited for the Central Bank’s monetary policy decision on September 30.
Key Highlights
- ASPI down 0.44% to 20,943.79
- Turnover of LKR 595.97 million, about 60% below the monthly average
- Foreign investors were net buyers by LKR 7.9 million
- Medium-term bond yields rose by up to 30 basis points over the week
- The rupee firmed slightly to LKR 330.26 per US dollar
Stock Market
The All Share Price Index lost 93.56 points, while the S&P SL20 shed 20.00 points, or 0.34%, to close at 5,920.72. The largest drags on the ASPI were CARS, DIAL, COMB, CINS and SEMB. Market capitalisation slipped 0.5% to LKR 7.59 trillion.
Turnover was the weakest of the past two weeks. John Keells Holdings was the most active counter at LKR 75 million, or 13% of the total. Among individual stocks, ASPH fell 14% and ACME 10%. CALI.U rose 10% and PACK 6%.
Foreign investors were net buyers for the first time in several sessions, but the amount was small. The market has seen net foreign outflows of LKR 1.51 billion so far in September and LKR 57.25 billion this year.
Fixed Income
Treasury bond yields rose on Monday, with the 6-year benchmark near 11.75%, up from about 11.45% a week earlier. The 5-year yield rose to around 11.50% and the 7-year to about 11.93%. Yields on 10-year and longer maturities were largely unchanged. The 91-day bill was quoted around 9.25%.
Banking system liquidity rose to LKR 384.12 billion from LKR 370.92 billion.
Currency
The rupee appreciated marginally to LKR 330.26 per dollar from LKR 330.35.
Business Impact
Higher medium-term yields signal that borrowing costs for the government, and potentially for corporates issuing debt, are edging up. Businesses with floating-rate loans or planned bond issues will watch Wednesday’s policy decision closely. The weak equity turnover also means share prices can move sharply on small volumes.
What to Watch Next
- The Central Bank’s policy decision on September 30
- Whether foreign investors return as sustained buyers
- Whether turnover recovers after the month-end
Key Numbers
| Indicator | Value | Change |
|---|---|---|
| ASPI | 20,943.79 | -93.56 (-0.44%) |
| S&P SL20 | 5,920.72 | -20.00 (-0.34%) |
| Turnover | LKR 595.97 Mn | -26.9% day-on-day |
| Net foreign flow | +LKR 7.89 Mn | September MTD: -LKR 1,507.2 Mn |
| 6-year bond yield | ~11.75% | +30 bps vs. last week |
| Banking system liquidity | LKR 384.12 Bn | +LKR 13.2 Bn |
| USD/LKR | 330.26 | from 330.35 |
Source: Colombo Stock Exchange market data, Central Bank of Sri Lanka statistics and publicly available market information.