Selling pressure rises as geopolitical tensions weigh on sentiment

By First Capital Research

Amidst a re-escalation of tensions in the Middle East, secondary market investors once again adopted a selling stance yesterday, despite subdued activity levels, resulting in only moderate volumes.

At the short end, activity was observed in the 2028 segment, with maturities dated 15.02.2028, 15.03.2028, 01.05.2028 and 15.12.2028, trading from 9.55% to 9.75%. Furthermore, 15.06.2029, 15.10.2029 and 15.12.2029 maturities traded between 9.80% to 9.90%. 

Approaching the belly end, 01.03.2030 and 15.10.2030 bonds were seen trading from 10.00% to 10.10%, whilst the 15.03.2031 maturity changed hands between 10.05% to 10.10%. Lastly, within the 2033 segment, bonds bearing maturities of 01.06.2033 and 01.11.2033 traded between 10.90% to 11.00%. 

On the external front, the LKR appreciated against the USD, closing at Rs. 313.51/USD compared to Rs. 314.22/USD recorded previously. Liquidity in the banking system contracted to Rs. 292.29bn from Rs. 298.34bn recorded previously.