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View all(65)📉 Bearish Sentiment Grips Colombo Bourse as ASPI Slumps 1.57%
The Sri Lankan stock market experienced a notable downturn today (June 8), driven by escalating Middle East tensions and a broader regional sell-off following Israeli strikes on Iran. • Market Indices: The benchmark All Share Price Index (ASPI) shed 340.85 points to close at 21,403.28, down 1.57%. The S&P Sri Lanka 20 Index fell by 55.58 points (0.92%) to finish at 5,968.42. • Turnover & Participation: Despite the price drops, market activity remained robust with a daily turnover of Rs. 2.61 Bn. Local trading heavily dominated the floor, with domestic participants accounting for 96.0% of the total volume. • Foreign Fund Flows: Foreign participation was limited at 4.0%, resulting in a net foreign outflow of Rs. 54.12 Mn. Foreign sales reached Rs. 132.39 Mn against purchases of Rs. 78.28 Mn. • Global Context: The domestic slump mirrors a wider Asia-Pacific decline. Regional markets were rattled by the geopolitical escalation, which triggered a 3% surge in global oil prices and strengthened the US dollar.
📈 Global Oil Prices Surge Amid Heightened Mideast Tensions
Global oil markets saw a sharp increase on Monday following renewed conflict in the Middle East, sparking concerns over critical supply routes. • Price Movements: Brent crude futures rose by US$ 3.20 (+3.39%) to US$ 96.24 per barrel, while U.S. crude increased by US$ 2.87 (+3.17%) to US$ 93.41 per barrel. • Geopolitical Context: Market instability follows renewed Israeli strikes in Lebanon and reported explosions in Iran, fueling fears regarding the closure of the Strait of Hormuz—the transit route for one-fifth of global oil. • Supply Outlook: Despite OPEC+ agreeing to its fourth consecutive monthly output increase, analysts suggest the impact will be negligible as many members struggle to meet production targets due to the ongoing blockage and infrastructure vulnerabilities. • Economic Impact: Oil prices have climbed over 50% since March. As a net importer, sustained volatility in global energy costs poses a significant challenge for Sri Lanka’s transportation sector and general inflation control. Market participants remain focused on potential diplomatic interventions, though physical supply chain constraints continue to dominate market sentiment.
📈 CSE Records Fifth Consecutive Weekly Loss
The Colombo Stock Exchange (CSE) faced sustained selling pressure this week, ending on a downward trend. • Weekly Performance: The ASPI declined 2.54% and the S&P SL20 fell 2.2%. Total market capitalization dropped by Rs. 206 Bn. • Daily Trade: ASPI ended at 21,744.13 (-0.07%), while the S&P SL20 closed at 6,024.00 (-0.13%). • Turnover & Activity: Daily turnover reached Rs. 2.98 Bn with 112.6 million shares traded. High-net-worth participation remained robust. • Foreign Sentiment: Foreign investors acted as net buyers, recording an inflow of Rs. 113.2 million. • Sector Insights: • The capital goods sector dominated trading, contributing 42% to daily turnover. • The food, beverage & tobacco and insurance sectors collectively accounted for 23% of turnover. • Key Drags: Declines in COMB, HAYL, JKH, WIND, and SPEN weighed heavily on the indices. Market sentiment remains cautious as selling pressure continues to impact broader investor activity.
🛢️ Global Oil Prices Edge Down as Oman Clarifies Port Operations
• Market Updates: Global oil benchmarks dipped slightly on Friday after Oman confirmed that operations at its Mina al Fahal port are proceeding normally, dismissing earlier reports of a loading suspension due to an explosion. • Price Movements: Brent crude futures fell 24 cents (0.25%) to $94.79 a barrel, while U.S. West Texas Intermediate (WTI) crude dropped 56 cents (0.6%) to $92.48 a barrel. Despite daily losses, both contracts are on track for their first weekly gain in three weeks, with WTI up over 6% for the week. • Supply & Geopolitical Risks: Oman exports 800,000 to 900,000 barrels per day from the terminal. While daily prices eased, broader market risks remain skewed to the upside due to limited traffic in the vital Strait of Hormuz and ongoing Middle East tensions. Analysts warn that falling global oil inventories could trigger a price spike in Q3. • Global Demand Outlook: OPEC is maintaining its global oil demand growth forecast at 1.2 million barrels per day for the year. Meanwhile, weaker demand in China continues to cap major price surges, even as a U.S. naval blockade has cut Iranian oil exports to a six-year low. _Note: Sri Lanka is highly sensitive to global fuel price fluctuations as an oil-importing nation, making these global supply-chain stabilize-and-spike trends critical for national energy costs._
💸 Sri Lankan Rupee Continues Weekly Downward Trend against US Dollar
The Sri Lankan Rupee depreciated steadily against the US Dollar on every trading day this week, indicating renewed pressure on the currency after a brief period of stability following recent market volatility. • Weekly Movement: The USD/LKR spot rate closed yesterday at Rs. 336.75 (buying) and Rs. 337.50 (selling), compared to last week's close of Rs. 330.00/Rs. 332.00. • Net Depreciation: Over the four trading sessions, the rupee lost Rs. 6.75 against the dollar on the buying rate and Rs. 5.50 on the selling rate. • Daily Breakdown: - Monday: Closed at Rs. 331.50/Rs. 332.50 - Tuesday: Dropped further to Rs. 332.50/Rs. 333.50 - Wednesday: Weakened to Rs. 335.00/Rs. 337.00 - Thursday (Yesterday): Settled at Rs. 336.75/Rs. 337.50 The continuous daily decline highlights immediate challenges in foreign exchange market stabilization, affecting broader trade and economic sentiment. (Based on weekly market data)
📉 Secondary Bond Market Continues Bearish Trend Amid Yield Pressures
The Sri Lankan secondary bond market remained subdued yesterday as bearish sentiment pushed yields higher, driven by recent Treasury bill auction results. Market Summary • Yield Pressures: Investor caution persisted as the rise in Treasury bill yields following the recent 100 bps policy rate hike has significantly outpaced the monetary adjustment. Global energy market volatility and mixed geopolitical signals added further upward pressure. • Bond Trades: Activity was limited but supported by block trades. Key maturities traded as follows: • 15.02.28 & 15.03.28: 11.95% • 01.05.28 & 01.07.28: 11.90% - 12.00% • 01.08.30: 12.30% • 15.06.34: 13.15% • 2035 maturities (March/June): 13.25% - 13.30% • 15.08.36: 13.28% - 13.29% • Money Market Liquidity: The net liquidity surplus stood at Rs. 111.94 Bn. The Central Bank drained Rs. 25 Bn via overnight Repo and Rs. 10 Bn via short-term Repo auctions, both at a weighted average rate of 8.75%. The weighted average call money rate held above 9.00% for a sixth day at 9.16%, while the Repo rate was 9.20%. • Forex Performance: The USD/LKR spot contracts closed weaker at Rs. 336.75/337.50 compared to the previous close of Rs. 335.00/337.00. Total traded volume reached US$ 98 Mn (as of June 3).
📈 Global Oil Prices Fall as Israel-Lebanon Ceasefire Boosts Diplomacy
Oil prices dipped on Thursday following a ceasefire agreement between Israel and Lebanon, raising hopes for a broader resolution to the U.S.-Israeli war with Iran and a potential reopening of the critical Strait of Hormuz. • Market Impact: Brent futures fell by US$ 1.14 (1.2%) to US$ 96.67 a barrel, while U.S. West Texas Intermediate (WTI) crude dropped 90 cents (0.9%) to US$ 95.12. This reversed a 2% surge on Wednesday triggered by regional hostilities. • Geopolitical Developments: The Lebanon-Israel truce, set to take effect within 24 hours of final approval, marks a potential breakthrough as Iran conditions broader agreements on halting aggression toward Hezbollah. Concurrently, the U.S. House approved a resolution to block the continued war against Iran, though it faces a likely presidential veto. • Supply & Demand Friction: - U.S. crude stockpiles saw a massive draw of 8 million barrels (reaching 433.7 million barrels for the week ended May 29), double the expected 4-million-barrel drop. - Russia officially acknowledged a decline in its oil production since the start of the year due to unplanned refinery maintenance. - Price losses were capped as analysts note the primary trend remains upside while physical flows stay restricted. • Impact on Key Buyers: Sluggish demand from China—a major market for emerging economies—has forced traders to offer discounts on Iranian oil for the first time since April and lower premiums on Russian crude to entice buyers.
CSE Ends Down 0.75%, Extending Losses into Third Session 📉
The Colombo stock market faced sharp declines yesterday, continuing its bearish streak for a third consecutive day. Investor sentiment remained subdued due to ongoing selling pressure, rising interest rates, and surging global oil prices. • Market Indices & Sentiment ASPI: Down 0.75% (-166.55 points) to close at 22,011.10 S&P SL20: Down 0.54% (-32.83 points) to close at 6,097.83 Market Breadth: Heavily bearish with 185 decliners against only 47 gainers. High-net-worth (HNW) and retail participation remained average. • Turnover & Foreign Activity Total Turnover: Over Rs. 2.00 Bn with 109.8 Mn shares traded. Foreign Investors: Net sellers, recording a net outflow of Rs. 410.26 Mn. • Sector & Stock Highlights Top Sectors: The consumer durables & apparel sector led daily turnover with a 20% share. Capital goods and banking sectors collectively contributed 32%. Top Contributors to Turnover: Teejay Lanka (Rs. 360 Mn), John Keells Holdings (Rs. 143 Mn), and Commercial Bank (Rs. 96 Mn). Top Negative Contributors: DIAL, SAMP, BREW, CCS, and DOCK dragged down the ASPI.
📈 Global Oil Prices Surge Amid Middle East Hostilities
• Market Impact: Global oil benchmarks rose to a one-week high on Wednesday. Brent futures increased by 81 cents (0.8%) to US$ 96.81 a barrel, while U.S. WTI crude climbed 91 cents (1.0%) to US$ 94.67. • Geopolitical Risks: Tensions flared as Iran launched ballistic missiles at Kuwait and Bahrain. While the targets were missed, U.S. forces responded with strikes on Iran's Qeshm Island. Additionally, Iran has mined large portions of the vital Strait of Hormuz, keeping vessel transits significantly below pre-conflict levels. • Supply Constraints: Stalled U.S.-Iran diplomatic talks and IEA warnings of critical global stock shortages ahead of peak summer demand are driving up risk premiums. Furthermore, provisional API data indicates U.S. crude oil inventories fell by 6.8 million barrels for the week ended May 29, marking a seventh consecutive weekly decline. • Sri Lankan Context: As an import-dependent nation, rising global energy prices put direct upward pressure on Sri Lanka's import bill and domestic inflation, underscoring the ongoing need for energy diversification.
Bearish Sentiment Persists in Secondary Bond Market Ahead of Rs. 140 Bn T-Bill Auction 📈
• Market Overview: The secondary bond market remained under pressure with yields edging higher across the curve due to persistent selling interest, cautious investor participation, and rising global crude oil prices. • Bond Yield Movements: Selective trades saw the 01.07.28 maturity trade at 11.50%, the 15.12.29 at 12.00%, and the 01.03.30 at 12.10%. Longer-term 15.06.34 maturity yields pushed up to a range of 13.12%–13.13%. • Upcoming Treasury Bill Auction: A Rs. 140.00 Bn T-Bill auction is scheduled today (Rs. 65.00 Bn for 91-day, Rs. 55.00 Bn for 182-day, and Rs. 20.00 Bn for 364-day tenors). This total is below the estimated maturing volume of Rs. 168.80 Bn. • Previous Auction Recap: Last week’s auction was undersubscribed, raising only 68.26% (Rs. 95.56 Bn) of its target. Driven by a recent 100-basis point Monetary Policy rate hike, weighted averages spiked to their highest levels in 79 weeks: 91-day at 9.36% (+118 bps), 182-day at 9.68% (+143 bps), and 364-day at 9.83% (+134 bps). • Money Market Liquidity: The weighted average call money rate held above 9% for a fourth day at 9.14%, while the REPO rate stood at 9.19%. Market net liquidity surplus was recorded at Rs. 93.56 Bn, with CBSL draining Rs. 40.00 Bn via an overnight repo auction at 8.75%. • Forex Market: The USD/LKR spot contracts depreciated slightly to close at Rs. 332.50/333.50 against the previous day's Rs. 331.50/332.50. Total traded volume stood at US$ 70.93 Mn.
🐻 CSE Continues Negative Run Amidst Lacklustre Investor Activity
• Overall Market Figures: The Colombo Stock Exchange remained bearish for a second consecutive day. The benchmark ASPI closed 0.39% lower (down 87.39 points) at 22,177.65, while the active S&P SL20 fell 0.32% (down 19.55 points) to 6,130.65. Daily market turnover reached Rs. 2.01 Bn involving 82.01 million shares. Foreign investors remained net buyers. • Sector Breakdowns: • Capital Goods: Was the top contributor to market turnover, led by John Keells Holdings. The sector index edged down slightly by 0.03%, with John Keells Holdings closing flat at Rs. 20. • Materials: Was the second highest turnover contributor, with the sector index increasing by 0.58%. Within this sector, Chevron Lubricants rose by Rs. 0.50 to close at Rs. 199.50, and Haycarb appreciated by Rs. 7.75 to close at Rs. 155.75. • Investor Participation: High net worth and institutional activity focused on John Keells Holdings, Ceylon Cold Stores (which gained Rs. 3.50 to close at Rs. 139.75), and Chevron Lubricants. Mixed interest was seen in Haycarb, HNB Finance, and Colombo Dockyard. • Retail Interest: Retail investors focused on the apparel & textiles sector via Hela Apparel Holdings, alongside Waskaduwa Beach Resort and Industrial Asphalts. Pan Asia Banking Corporation also recorded a gain of one rupee to close at Rs. 55.40 among the top turnover contributors.
Sri Lankan Sapphire “Peacock of Ceylon” Fetches Over Rs. 500 M at Geneva Auction 📈
• Overall Sale: An exceptional, unheated Sri Lankan sapphire known as "The Peacock of Ceylon" has successfully fetched over Rs. 500 million (exceeding its initial estimates of up to CHF 1.5 million or US$ 1.2 million) at a high-profile international jewelry auction held in Geneva. • Gemstone Profile: The historic stone is a massive, unmounted cushion-shaped blue sapphire weighing 102.40 carats. Reports from leading gemological laboratories (including SSEF and Gübelin) confirmed its absolute Ceylon origin with zero indications of thermal or heat enhancement. • National Context & Market Significance: The historic sale underscores the premium global demand for high-quality, ethically-sourced gemstones and jewelry from Sri Lanka. The unheated peacock-blue hue represents the rarest and most desirable category of sapphires in the luxury market. This landmark transaction further reinforces the country's strategic standing as a premier global hub for elite collector-grade colored gemstones, bolstering non-traditional export visibility.