Profit taking emerges following extended bullish momentum

By First Capital Research 

The secondary market sentiment saw a reversal in sentiment during the day as investors resorted to book profits after extended bullish interest. 

Mid tenor maturities attracted most interest during the day. Accordingly, on the short end of the curve, 01.06.2025 saw trades at 10.40% while 01.06.2026 registered trades at 10.45%. 

Moreover, 15.12.2027 recorded transactions between 11.40%-11.50%. On the 2028 tenor, 15.02.2028 hovered between 11.45%-11.60% and 15.12.2028 hovered between 11.65%-11.80%. 

Meanwhile, 15.06.2029 registered trades between 11.90%-12.10% while 01.12.2031 recorded between 12.30%-12.38%. Overnight liquidity improved compared to previous day and closed at Rs. 114.7bn while CBSL Holdings remained stagnant at Rs. 2,515.6bn. 

On the external side, LKR continued to appreciate against the greenback, closing at Rs. 294.9/USD, compared to Wednesday’s closing of Rs. 295.6/USD. 

Similarly, LKR appreciated against other major currencies including, GBP, EUR, CNY, JPY and AUD. 
Meanwhile, Weekly AWPLR for the week ending 27th Sep-24 decreased by 06bps to 9.32% compared to the previous week while AWLR as at Aug-24 remains at 12.12%, indicating a broader gap between the both.