The ASPI added 6 points while trading activity stayed below the monthly average, banking system liquidity contracted by LKR 21 billion, and the rupee was little changed.
Key Highlights
- The ASPI rose 5.97 points (0.03%) to 20,650.23, while the S&P SL20 slipped 2.74 points (0.05%) to 5,844.28.
- Turnover was LKR 1.07 billion, 27% below the monthly average of LKR 1.5 billion.
- Foreign investors were net sellers by LKR 29.3 million.
- Banking system liquidity fell to LKR 353.98 billion from LKR 375.36 billion.
- The rupee stood at LKR 330.62 per US dollar.
Stock Market Summary
The Colombo Stock Exchange ended the session almost unchanged. The ASPI edged up while the S&P SL20 eased slightly. Market capitalisation rose 0.1% to LKR 7.48 trillion.
Turnover of LKR 1.07 billion was down 66.3% from the previous session, when it reached LKR 3.16 billion, and well under the monthly average. Share volume fell 36.3% to 43.09 million.
The Food, Beverage and Tobacco sector led turnover with a 23% share. The Diversified Financials and Banking sectors together accounted for 31%. Among individual counters, AMSL posted the largest turnover at LKR 156 million (15% of the total), but its share price fell 22%, the steepest decline on the board. SING dropped 9%. Among gainers, SHOT rose 9% and GREG gained 8%.
Foreign investors bought LKR 86.2 million and sold LKR 115.4 million, a net outflow of LKR 29.3 million. Net foreign outflows total LKR 376.1 million for the month so far and LKR 57.7 billion for the year to date.
Fixed Income Summary
Secondary market activity was thin. Indicative Treasury bill yields were unchanged from the previous day at 9.20% (91-day), 9.45% (182-day) and 9.90% (364-day).
Medium-term bond yields edged up. The two-year and three-year benchmarks rose 8 basis points from the previous day to 10.68% and 10.98%. The five-year yield stood at 11.40%, 10 basis points lower than a week earlier. The ten-year was steady at 12.18%.
Currency Market Update
The rupee was marginally weaker at LKR 330.62 per US dollar, compared with LKR 330.60 earlier.
Business Impact
For companies, the move in banking liquidity is the most relevant development of the day. A drop of LKR 21.4 billion in system liquidity is worth watching for businesses that rely on short-term funding, though one session does not establish a trend. The stable rupee gives importers and exporters little change in near-term conversion costs. Equity activity was light, so the session says little about direction.
What to Watch Next
- Whether banking system liquidity continues to fall or recovers.
- T-bill maturities of LKR 80.9 billion due in the week ending October 9.
- Whether turnover moves back toward the LKR 1.5 billion monthly average.
- Whether foreign outflows persist after a month-to-date net outflow of LKR 376.1 million.
Key Numbers
| Indicator | Value | Change |
|---|---|---|
| ASPI | 20,650.23 | +5.97 pts (+0.03%) |
| S&P SL20 | 5,844.28 | -2.74 pts (-0.05%) |
| Turnover | LKR 1.07 Bn | -27% vs monthly average |
| Share volume | 43.09 Mn | -36.3% vs previous session |
| Market capitalisation | LKR 7.48 Tn | +0.1% |
| Net foreign flow | -LKR 29.3 Mn | MTD: -LKR 376.1 Mn |
| 91-day T-bill | 9.20% | Unchanged |
| 364-day T-bill | 9.90% | Unchanged |
| 2-year bond | 10.68% | +8 bps (day) |
| 3-year bond | 10.98% | +8 bps (day) |
| Banking system liquidity | LKR 353.98 Bn | -LKR 21.38 Bn |
| USD/LKR | 330.62 | From 330.60 |
Source Attribution: Colombo Stock Exchange market data, Central Bank of Sri Lanka statistics and publicly available market information.