ASPI slips further amid broad-based selling as a large crossing in Cargills lifts daily turnover past monthly average, while bond yields firm ahead of Wednesday’s rate decision
Key Highlights
Sri Lanka’s stock market closed lower on Tuesday for a second consecutive session, even as daily turnover surged past LKR 3 billion for the first time in a month. The ASPI fell 62 points to close at 21,145.73, while the S&P SL20 edged up marginally to 5,945.01. In the fixed income market, secondary bond yields firmed at the belly of the curve as investors positioned ahead of Wednesday’s monetary policy announcement, and the rupee held broadly steady against the US dollar.
Stock Market Summary
Turnover reached LKR 3.28 billion, more than double the monthly average of LKR 1.6 billion. However, the increase was driven almost entirely by a single LKR 2.3 billion crossing in Cargills (CARG), which alone accounted for 69% of the day’s total turnover. Excluding this trade, underlying activity was comparatively thin — trading volume actually fell 42% from the prior session to 38.5 million shares. Losses were broad-based, led by CINS, COMB, RICH, CARS and HARI, while the Food & Staples Retailing sector dominated turnover on the back of the Cargills trade. Foreign investors were net buyers on the day, with inflows of LKR 79.8 million.
Fixed Income Summary
Secondary bond market activity was moderate as investors positioned cautiously ahead of Wednesday’s central bank rate decision and Treasury bill auction. Yields at the mid-to-long end of the curve rose by as much as 30 basis points week-on-week, with the 2031 and 2034 maturities most affected. Foreign buying interest was concentrated in 2030 maturities, while local investors sold into 2031 paper. Overnight liquidity in the banking system contracted to LKR 162.36 billion from LKR 168.13 billion.
Currency Market Update
The rupee depreciated marginally against the US dollar, closing at LKR 336.27 compared to LKR 336.23 previously — a negligible daily move.
Business Impact
While headline turnover suggests a pickup in market activity, the concentration in a single large trade means it does not reflect broader investor participation, which in fact declined. Separately, while daily foreign flows were positive, this masks a weaker trend: month-to-date foreign flows remain net negative at LKR 2.76 billion, and year-to-date foreign outflows stand at LKR 36.87 billion. Rising bond yields and tighter overnight liquidity point to a market bracing for a potential policy shift.
What to Watch Next
Sri Lanka’s central bank is due to announce its monetary policy decision on Wednesday, alongside T-bill auction results — both likely to set the tone for equity and fixed income markets in the sessions ahead.
Key Numbers
| Indicator | Value | Change |
|---|---|---|
| ASPI | 21,145.73 | -62.37 pts (-0.29%) |
| S&P SL20 | 5,945.01 | +1.79 pts (+0.03%) |
| Turnover | LKR 3.28 Bn | +107.4% vs monthly avg |
| Volume | 38.53 Mn shares | -42.1% |
| Foreign Flow (Daily) | +LKR 79.8 Mn | Net buying |
| Foreign Flow (MTD) | -LKR 2,760.9 Mn | Net selling |
| Foreign Flow (YTD) | -LKR 36,868.9 Mn | Net selling |
| USD/LKR | 336.27 | +0.04 (marginal depreciation) |
| Overnight Liquidity | LKR 162.36 Bn | -LKR 5.77 Bn |
| 5Y/6Y/7Y Bond Yields | +30 bps (WoW) | Rising |
Source Attribution
Source: Colombo Stock Exchange market data, Central Bank of Sri Lanka statistics and publicly available market information.