Foreign investors remained net sellers even as a single large crossing lifted daily trading activity well above monthly norms
The Colombo Stock Exchange closed higher on Thursday, with both benchmark indices extending recent gains, while a single large crossing pushed daily turnover well above its monthly norm.
Stock Market Summary
The All Share Price Index (ASPI) added 102.73 points to close at 21,269.67, a gain of 0.49%. The S&P SL20 index, which tracks the most liquid large-cap counters, rose 26.41 points, or 0.44%, to end at 5,971.50.
Daily turnover reached LKR 12.24 billion, more than four times the monthly average of roughly LKR 2.3 billion. Trading volume rose to 231.09 million shares. Most of this activity was concentrated in a single crossing involving a diversified financials counter, which accounted for the bulk of the day’s turnover and volume. Excluding that transaction, underlying market activity was closer to typical daily levels.
Foreign investors recorded a net outflow of LKR 7.97 billion for the day. However, this figure was driven almost entirely by the same large crossing; when that transaction is set aside, foreign participation in the broader market leaned toward net buying. Month-to-date net foreign flows stand at a negative LKR 13.95 billion, with year-to-date net outflows at LKR 50.24 billion.
Fixed Income Summary
Secondary market bond yields were largely unchanged across tenors compared to the previous session, with trading concentrated in the 2028 to 2037 maturity range. At a Treasury bill auction settling this week, the 182-day yield eased by 22 basis points, while the 91-day and 364-day yields saw smaller declines. Overnight liquidity in the banking system expanded to LKR 218.0 billion from LKR 165.38 billion previously, while foreign holdings of government securities rose 3.53% week-on-week.
Currency Market Update
The rupee appreciated modestly against the US dollar, closing at LKR 335.60 compared to LKR 335.73 previously.
Business Impact
The easing 182-day Treasury bill yield may signal modestly softer short-term borrowing costs ahead for businesses reliant on short-tenor credit. Expanded system liquidity, alongside a stable currency, points to steady near-term funding conditions. Investors should note that headline turnover and foreign flow figures were shaped by one large transaction rather than broad-based market movement.
What to Watch Next
Market participants will watch whether foreign flows outside large one-off transactions sustain a buying trend, and whether Treasury bill yields continue easing at upcoming auctions.
Key Numbers
| Metric | Value |
|---|---|
| ASPI | 21,269.67 (+0.49%) |
| S&P SL20 | 5,971.50 (+0.44%) |
| Turnover | LKR 12.24 Bn |
| Volume | 231.09 Mn shares |
| Net foreign flow (day) | -LKR 7.97 Bn |
| Net foreign flow (MTD) | -LKR 13.95 Bn |
| Net foreign flow (YTD) | -LKR 50.24 Bn |
| USD/LKR | 335.60 |
| Overnight liquidity | LKR 218.0 Bn |
| 182-day T-bill yield | -22 bps |
Source Attribution
Source: Colombo Stock Exchange market data, Central Bank of Sri Lanka statistics and publicly available market information.