Market News
View all(114)📈 Asian Markets Steady Ahead of Fed Rate Hike; Brent Sips to $108.13
• Global Equities & Bonds: MSCI Asia-Pacific snapped a 4-day losing streak, rising 0.5%, supported by Korean and Taiwanese equities. Nikkei 225 edged up 0.3%, and S&P 500 futures gained 0.2%. US 10-year Treasury yield flattened at 4.9938% after briefly hitting a 3-year peak near 5%. • Monetary Policy Impact: CME FedWatch indicates a 93% probability of a 25 bps rate hike by the Federal Reserve. A potential pause risks market downside of 1.25%-1.75% for the S&P 500, according to JPMorgan analysts. The US Dollar Index dropped 0.1% to 99.601. Higher global interest rates continue to exert pressure on emerging markets like Sri Lanka's borrowing costs. • Commodities & Energy: Brent crude futures dropped 0.6% to $108.13/barrel following a 2.9% surge driven by export suspensions at Saudi Arabia’s Yanbu hub. Sustained high oil prices threaten energy-importing economies, posing inflation and current account risks for Sri Lanka's petroleum reliant trade balance. • Digital Assets: Crypto markets stabilized after the US Senate rejected comprehensive crypto legislation; Bitcoin dropped 0.1% to $75,821.94 while Ether slipped 0.2% to $2,402.12.
📉 Sri Lankan Rupee Weakers Slightly to 330.70/331.20; Treasury Bond Yields Mostly Lower
• Foreign Exchange Market: The Sri Lankan rupee (LKR) traded weaker at 330.70/331.20 against the US dollar in the spot market on Wednesday, compared to 330.70/331.00 recorded the previous day. • Government Securities Market: Yields on secondary market Treasury bonds quoted steady to lower across selected tenors during morning trading. - 2030 Bonds: 01.08.2030 maturity dropped to 11.25/35% (from 11.35/40%); 15.10.2030 maturity fell to 11.35/45% (from 11.40/45%). - 2031-2032 Bonds: 01.02.2031 maturity quoted at 11.40/50%; 15.12.2032 maturity dropped to 11.75/85% (from 11.80/85%). - 2033-2034 Bonds: 01.06.2033 and 01.11.2033 maturities edged higher to 11.85/12.00%; 15.10.2034 maturity declined to 11.95/12.00% (from 12.05/10%). • Primary Auctions: A primary market auction for LKR 70,000 million worth of Treasury bills remained ongoing.
📉 CSE Marginally Lower in Wednesday Morning Trade
• Market Indices: Benchmark ASPI dipped 0.07% (-15.72 points) to 21,246.41. The liquid S&P SL20 remained flat, edging up 0.00% (+0.15 points) to 5,976.82. • Turnover & Key Sectors: Overall market turnover reached Rs. 106.1 Mn, with diversified financials leading activity at Rs. 26.4 Mn. • Top Movers: • Gainers: Namunukula Plantations (+12.37% to Rs. 74.50), Colombo Land & Development (+4.21% to Rs. 49.50), Co-operative Insurance (+3.03% to Rs. 3.40), and banking major HNB (+0.20% to Rs. 380.75). • Losers: Digital Mobility Solutions (-1.59% to Rs. 155.00), Hemas Holdings (-0.65% to Rs. 30.80), Melstacorp (-0.41% to Rs. 184.00), and Sampath Bank (-0.36% to Rs. 139.75). • Corporate Developments: • Asia Asset Finance converted ~41.4 Mn preference shares into ~53.3 Mn ordinary voting shares, listed on Sep 16 (traded down 0.86% to Rs. 46.10). • Printcare announced a 19-for-70 rights issue of ~23.3 Mn shares at Rs. 30.00 each to raise Rs. 700.01 Mn for capital and expansion (traded down 5.00% to Rs. 38.00).
📉 Sri Lanka Rupee Closes Weaker; Bond Yields Trend Upward
• Foreign Exchange Market: Sri Lankan Rupee closed weaker at 330.70/331.00 against the US Dollar in the spot market, down from 329.15/35 in the previous session. • Treasury Bond Market: Yields moved higher across short, medium, and long-term maturities: • 15.09.2027: Quoted at 9.90/10.20% (up from 9.80/95%) • 15.03.2028: Quoted at 10.35/45% • 15.12.2029: Quoted at 10.92/11.00% (up from 10.75/90%) • 01.08.2030: Quoted at 11.35/40% (up from 11.10/15%) • 15.10.2030: Quoted at 11.40/45% (up from 11.15/35%) • 15.12.2032: Quoted at 11.80/85% (up from 11.60/65%) • 01.06.2033: Quoted at 11.85/95% (up from 11.80/90%) • 01.11.2033: Quoted at 11.90/12.00% (up from 11.75/85%) • 15.10.2034: Quoted at 12.05/10% (up from 11.93/12.00%) • Macro Economic Impact: Tighter money market conditions and rising yields reflect ongoing adjustments across treasury bonds & foreign exchange markets, impacting national borrowing costs and market liquidity.
📉 Sri Lanka Stocks Close Lower as ASPI Drops 0.24% in Rs 2.23 Bn Turnover
• Market Performance: The benchmark All Share Price Index (ASPI) fell 0.24% (51.79 points) to close at 21,262.13, while the liquid S&P SL20 index lost 0.29% (17.66 points) to settle at 5,976.67. • Turnover & Sectors: Total daily market turnover reached Rs 2.23 Bn, driven largely by the food, beverage & tobacco sector, which dominated activity with Rs 1.2 Bn. • Top Gainers: Positive contributors to the ASPI included Sampath Bank (+0.36% to Rs 140.25), Watawala Plantations (+3.37% to Rs 46.00), SMB Finance (+10.00% to Rs 1.10), and Lion Brewery (+1.25% to Rs 1,780.00). • Top Losers: Main drag on the index came from Dialog Axiata (-2.95% to Rs 46.00), Melstacorp (-0.81% to Rs 184.75), and Commercial Bank (-0.49% to Rs 204.00). • Corporate News: A mandatory offer for Industrial Asphalts fell through after the SEC refused clear a share transfer, following the company's placement on the CSE Watchlist for non-compliance.
📈 Sri Lanka Rupee Weaker at 330.15/25, Bond Yields Rise in Volatile Market
• Foreign Exchange: The Sri Lankan rupee softened to 330.15/25 against the US dollar spot on Tuesday, down from 329.15/35 on Monday. Telegraphic transfer rates stood at 324.75 buying and 333.75 selling for the US dollar, 372.28 buying and 386.06 selling for the Euro, and 436.99 buying and 451.09 selling for the Pound. • Government Securities: Bond yields quoted higher across multiple maturities in a volatile trading environment. • 2028 Bond (15.10.2028): Quoted at 10.45/65% • 2029 Bond (15.12.2029): Rose to 10.75/90% (up from 10.70/85%) • 2030 Bond (01.08.2030): Edged up to 11.10/20% (up from 11.10/15%) • 2033 Bonds: 01.06.2033 quoted at 11.80/90%; 01.11.2033 rose to 11.90/12.00% (up from 11.75/85%) • 2034 Bond (15.10.2034): Increased to 11.95/12.05% (up from 11.93/12.00%) • Equity Markets: The Colombo Stock Exchange traded slightly higher, reflecting modest gains. The All Share Price Index (ASPI) gained +0.05% (+11.61 points) to reach 21,325.53, while the S&P SL20 rose +0.11% (+6.63 points) to 6,000.96.
📈 Sri Lanka Stocks Trade Up; Vidullanka Gains on Greenfield Renewable Project
• Market Performance: CSE indices traded up on Tuesday morning. The benchmark ASPI rose 0.06% (+13.77 pts) to 21,327.69, while the S&P SL20 grew 0.16% (+9.48 pts) to 6,003.81. Overall market turnover reached Rs. 236.16 Bn. • Sector Breakdown & Top Movers: Banking led market turnover, generating Rs. 116.54 Bn. - Top Gainers: Sunshine Holdings (+3.10% to Rs. 29.90), John Keells Holdings (+0.52% to Rs. 19.40), and Sampath Bank (+0.18% to Rs. 140.00). - Top Decliners: Royal Ceramics Lanka (-1.67% to Rs. 47.10), Central Finance (-0.68% to Rs. 220.00), National Development Bank (-0.45% to Rs. 110.50), Richard Pieris (-0.37% to Rs. 27.20), and Commercial Bank (-0.12% to Rs. 204.75). • Key Corporate Highlights: Vidullanka shares gained 1.85% to trade at Rs. 22.00 following an initial share subscription of Rs. 100 Mn in Vidul Biomass II (Pvt) Ltd. The company is undertaking the greenfield 6.6MW Medawachchiya Dendro Power Project in Anuradhapura, carrying a total project cost of US$ 16.1 Mn and a total equity commitment of ~Rs. 1.3 Bn, reflecting ongoing investment in Sri Lanka's renewable energy sector.
🏛️ Sri Lanka Raises Extra Rs8Bn via Tap Issuance for Treasury Bonds
• Total Issuance: The Public Debt Management Office sold an additional Rs 8,000 Mn in bonds on tap following an auction, bringing the total bonds issued for the week to Rs 158 Bn (exceeding the initial Rs 150 Bn offer). • Tap Allotments & Yields: • 2034 Bond (LKB00934J156): Sold at a weighted average yield rate of 11.96% (Maturity: Oct 15, 2034). • 2037 Bond (LKB01237G019): Sold at a weighted average yield rate of 12.08% (Maturity: Jul 01, 2037). • Market Demand: Total market subscription for the tap option reached Rs 15,402 Mn. • Auction Context: Follows the main auction where Rs 150 Bn was raised across 2030, 2034, and 2037 maturities. Settlement date is set for Sep 15, 2026.
📈 Global Markets Waver as Crude Surges & Central Banks Prepare Rates Hike
• Macro Overview: Asian equity markets struggled as escalating Middle East tensions drove crude prices higher, raising global inflation risks ahead of key policy decisions by the US Federal Reserve and the Bank of Japan. • Energy & Commodity Markets: • Brent crude rose 1.21% to US$ 106.96/bbl; US crude increased 1.27% to US$ 102.68/bbl following Houthi attacks on Saudi oil infrastructure. • Rising global oil prices compound inflationary risks for energy-importing nations, impacting fuel pricing structures and import costs. • Spot gold eased 0.15% to US$ 4,291.59/oz, while silver fell 0.31% to US$ 63.03/oz. • Monetary & Bond Markets: • Markets price in a 90% chance of a 25 bps rate hike by the US Fed, its first since mid-2023. • Benchmark 10-year US Treasury yields touched 5.00%. • Bank of Japan is expected to raise its benchmark policy rate by 25 bps to 1.25% to support the yen. • Regional Market Movements: • MSCI Asia-Pacific ex-Japan dipped 0.12%. • South Korea's KOSPI declined 0.25%, while Japan's Nikkei edged up 0.19%. • US Dollar Index rose 0.05% to 99.53; USD/JPY advanced 0.17% to 154.61.
📈 Sri Lankan Secondary Bond Market & Forex Update: Yields Rise Amid Bearish Sentiment
• Secondary Bond Market Overview: Secondary government securities yields extended their upward trajectory amid geopolitical tensions in the Middle East, elevated global oil prices, and persistent hawkish expectations from major central banks. Despite market pressures, transaction volumes remained robust, supported by sizeable block trades. • Yield Curve Movements: • 2029 Maturities: 15.09.29 and 15.12.29 traded at 10.70% • 2030 Maturities: 01.08.30 (10.90%–11.15%), 15.10.30 (11.10%–11.22%) • 2031–2033 Maturities: 01.12.31 (11.52%–11.62%), 01.11.33 (11.85%) • 2034–2037 Maturities: 15.06.34 and 15.09.34 (12.00%), 15.10.34 (11.96%–11.98%), 15.08.36 (12.00%), 01.07.37 (12.05%–12.08%) • Money Market Liquidity: • Net liquidity surplus stood at Rs. 131.40 Bn. • Central Bank SDFR standing deposits: Rs. 58.06 Bn (at 8.25%); SLFR borrowings: Rs. 3.16 Bn (at 9.25%). • Central Bank absorbed Rs. 76.50 Bn via repo auctions (Overnight: Rs. 56.50 Bn at 8.72%; 7-day: Rs. 20.00 Bn at 8.75%). • Weighted average call money rate: 8.88%; repo rate: 8.96%. • Foreign Exchange (Forex): • USD/LKR spot rate depreciated to Rs. 329.15/329.35 (compared to Rs. 328.60/328.70 previously). • Total traded volume (11 Sept): US$ 86.23 Mn.
📉 CSE Starts New Week in Red Amid Global Uncertainty
• Market Indices & Breadth: The benchmark ASPI dropped 69 points (-0.3%) following afternoon selling pressure, while the S&P SL20 slipped 8 points (-0.1%). Market sentiment was heavily negative, with 141 decliners outnumbering 66 gainers. • Turnover & Investor Activity: Total turnover stood at Rs. 1.5 Bn, slightly above last week's Rs. 1.4 Bn average. Foreign investors remained net sellers with outflows of Rs. 94.7 Mn. High net worth and institutional activity concentrated in JKH (Rs. 255 Mn), SAMP (Rs. 233 Mn), and LIOC (Rs. 221 Mn). Retail interest was seen in Industrial Asphalts, Browns Investments, and HNB Finance. • Key Drag & Sector Movers: Top negative contributors dragging the index included DIAL (-7 pts), SPEN (-6 pts), LOLC (-4 pts), and CCS (-4 pts). Notable price declines were recorded in ASIR (-3.8%), CCS (-2.1%), SPEN (-2.1%), DIAL (-1.0%), and SUN (-1.0%). • Market Drivers: Trading remained cautious due to elevated global oil prices and Middle East geopolitical tensions, keeping buyers on the sidelines.
📈 Foreign Investors Buy Over US$ 8.5 Mn in Sri Lankan Rupee Bonds
• Weekly & Consecutive Inflows: Foreign investors bought a net LKR 2.75 Bn (US$ 8.5 Mn) in government securities in the week ended September 11. This extends foreign buying to 13 straight weeks, totaling LKR 92 Bn (US$ 280 Mn) since June 19. • Record Foreign Holdings: Total foreign holding in rupee bonds reached a record LKR 213.4 Bn, up from LKR 72.1 Bn total inflow YTD and LKR 71.5 Bn in 2025. • Currency Stabilization: Inflows stabilized as the rupee recovered to 332 against the US dollar after dropping to 354 in May. The rupee has depreciated 5.7% YTD in 2026 amid elevated oil import costs and Middle East tensions. • Monetary Policy Context: Deflationary policies previously supported inflows. However, a 100 bps rate hike in May addressed recent inflationary pressures triggered by fuel price increases.