Cautious market mood results in softened trading activity

By First Capital Research

The secondary market recorded yet another session of moderate volumes and limited activity, as the broader macroeconomic outlook remains uncertain in the aftermath of the cyclone and floods. 

In line with the recent sessions, the selling interest persisted, including a measure of foreign selling.

Among the trades executed yesterday, the 15.09.2027 maturity traded at a yield of 9.00 percent. This was followed by a group of 2028 maturities, including 15.02.2028, 15.03.2028, 01.05.2028 and 01.07.2028, all of which were seen trading within the 9.20 percent to 9.40 percent range. The 15.06.2029 and 15.10.2029 bonds also registered activity, changing hands at 9.55 percent to 9.65 percent. Moving towards the belly end, 15.05.2031 traded at 10.20 percent to 10.30 percent, while the 01.11.2033 maturity traded at 10.60 percent.

On the external front, the Sri Lankan rupee depreciated against the US dollar, closing at Rs.308.83/US dollar, compared to Rs.308.51/US dollar seen previously. Overnight liquidity in the banking system expanded to Rs.102.8 million, from Rs.97.0 million recorded on the previous day.