Modest index gains, flat turnover and a stable yield curve marked Thursday’s session, while foreign investors remained net sellers.
Key Highlights
- The ASPI ended five consecutive sessions of losses, rising 0.33% to 20,880.90.
- Turnover slipped to LKR 1.43 billion, about 2% below the monthly average.
- Foreign investors recorded a net outflow of LKR 94.2 million.
- Secondary market Treasury yields were largely unchanged.
- The rupee firmed marginally to LKR 330.70 per US dollar.
Stock Market Summary
The All Share Price Index gained 67.97 points to close at 20,880.90, while the S&P SL20 added 7.49 points, or 0.13%, to finish at 5,901.65. The advance came a day after the Central Bank of Sri Lanka held its Overnight Policy Rate at 8.75%.
Turnover totalled LKR 1.43 billion, down 7.7% from the previous session, while traded volume rose 11.1% to 65.4 million shares. Banking stocks accounted for 34% of turnover, with Sampath Bank the largest single contributor at LKR 352 million. Expolanka, Lanka IOC and John Keells Holdings followed.
Foreign investors sold more than they bought, with outflows of LKR 139.6 million against inflows of LKR 45.4 million. John Keells Holdings saw net foreign selling of LKR 111.2 million. Net foreign outflows for the year now stand at LKR 57.4 billion.
Fixed Income Summary
Government securities trading was light, and yields were little changed. Bonds maturing in October and December 2029 traded between 10.75% and 10.85%, while 2030 maturities changed hands at 11.12% to 11.20%. Longer-dated bonds maturing in 2034 and 2035 traded between 12.00% and 12.10%.
At Wednesday’s Treasury bill auction, the 91-day, 184-day and 364-day rates rose by 5, 4 and 2 basis points to 9.25%, 9.41% and 9.95%.
Currency Market Update
The rupee closed at LKR 330.70 per dollar, compared with LKR 330.83 earlier. Liquidity in the banking system rose to LKR 355.13 billion from LKR 338.66 billion.
Business Impact
Steady government bond yields suggest borrowing cost benchmarks remained stable. A firmer liquidity position and a steady rupee give importers and treasury teams a calmer backdrop. Continued foreign selling shows overseas participation in the equity market remains subdued.
What to Watch Next
Market participants will watch whether turnover recovers toward its monthly average and whether foreign outflows persist. Treasury bill maturities of LKR 80.9 billion fall due in the week ending October 9.
Key Numbers
| Indicator | Latest | Change |
|---|---|---|
| ASPI | 20,880.90 | +67.97 pts (+0.33%) |
| S&P SL20 | 5,901.65 | +7.49 pts (+0.13%) |
| Turnover | LKR 1,434.1 Mn | -7.7% day on day |
| Share volume | 65.4 Mn | +11.1% |
| Market capitalisation | LKR 7,563.2 Bn | +0.2% |
| Net foreign flow | -LKR 94.2 Mn | YTD: -LKR 57,389 Mn |
| 91-day T-bill (auction) | 9.25% | +5 bps |
| 184-day T-bill (auction) | 9.41% | +4 bps |
| 364-day T-bill (auction) | 9.95% | +2 bps |
| USD/LKR | 330.70 | vs 330.83 earlier |
| Banking system liquidity | LKR 355.13 Bn | vs LKR 338.66 Bn |
| OPR | 8.75% | Unchanged |
Source Attribution: Colombo Stock Exchange market data, Central Bank of Sri Lanka statistics and publicly available market information.