Resurgence of market activity post-election results

By First Capital Research

The secondary market experienced slight buying interest during the day on the back of moderate volumes as yields across the board witnessed a modest decline.

Furthermore, the broader market pivoted from the uphill trend in rates witnessed during the previous week, influenced by the uncertainty surrounding the political landscape in the country. However, the secondary market experienced revitalised interest during the day signalled by the people’s mandate after the announcement of the ninth executive president of Sri Lanka.

Numerous trades were enticed during the day as they registered comparatively lower, namely the three-month bill traded at 10.50 percent whilst the six-month bill traded at 10.75 percent. The liquid tenures 2026, 2028 and 2029 recorded trades as the 01.02.26 maturity traded at 11.40 percent, 01.06.26 maturity traded at 11.60 percent. 15.02.28 traded between the range of 13.60 percent-13.30 percent and 01.05.28 traded between the range of 13.60 percent-13.35 percent. The 15.06.29 maturities traded between 13.80 percent-13.60 percent whilst 15.09.29 traded at 13.70 percent.

Overnight liquidity was recorded at Rs.37.7 billion and the Central Bank holdings remained stagnant at Rs.2,515.6 billion.

On the external side, the Sri Lankan rupee slightly depreciated against the green back, recording at Rs.304.9 during the day.