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View all(69)📈 Govt Raises Only Half of T-Bill Target as Yields Climb
• Auction Overview: The Public Debt Management Office raised Rs. 71,744 million in its latest Treasury Bill auction today, securing just 51.2% of its Rs. 140,000 million target. This shortfall occurred despite strong market interest, with total bids reaching Rs. 201,006 million. • Yield Breakdown: Interest rates saw a notable increase across all three maturities compared to the previous auction: • 91-Day: Rose to 10.09% (up from 9.84%) • 182-Day: Rose to 10.27% (up from 10.01%) • 364-Day: Rose to 10.16% (up from 10.02%) • Maturity Allocation: The government heavily favored short-term borrowing, accepting Rs. 56,598 million for the 91-day maturity. Longer-term debt saw minimal acceptance, with only Rs. 8,924 million taken for 182-day bills and Rs. 6,222 million for 364-day bills.
📈 Rupee Strengthens Following CBSL's New Export Conversion Mandate
The Sri Lankan Rupee (LKR) appreciated significantly against the US Dollar today (June 10), driven by a strategic Central Bank of Sri Lanka (CBSL) policy shift to boost domestic liquidity. • Exchange Rate Movements: The US Dollar buying rate dropped from Rs. 332.38 to Rs. 324.66, while the selling rate fell from Rs. 342.08 to Rs. 335.39. • New Policy Directive: The appreciation follows an extraordinary gazette shortening the timeframe for exporters to convert foreign earnings into local currency. The previous three-month window has been reduced to just one month. • Key Mandate Details: All merchandise exporters (covering vital sectors like apparel & textiles and tea) must bring earnings into the country and convert the remaining balance—after authorized payments—into LKR on or before the 10th day of the following month.
📈 Global Markets Shaken by Middle East Escalation; Oil Surges Past $92
• Market Summary: Asian equities faced a broad sell-off on Wednesday following U.S. airstrikes against Iran. MSCI’s Asia-Pacific index dropped 0.6%, Japan's Nikkei fell 0.9%, and South Korea's KOSPI slumped 2%. U.S. futures and tech stocks also faced pressure amid AI valuation concerns and rising geopolitical risks. • Energy & Commodities: Crude oil prices climbed roughly 1% on fears of potential supply route disruptions. Brent crude futures rose 0.9% to US$ 92.29 a barrel, while U.S. WTI crude increased 0.8% to US$ 88.97 a barrel. • Inflation & Interest Rates: Investors await U.S. inflation data, with economists predicting a 4.2% YoY increase for May—the largest annual CPI rise since April 2023. Sticky inflation and a tight jobs market have led traders to fully price in a 25-basis-point Federal Reserve rate hike for December, reversing prior expectations of interest rate cuts. • Global & Regional Impact: High oil prices and a firm U.S. dollar are pressuring emerging markets, forcing Bank Indonesia into a surprise off-cycle interest rate hike to defend its currency. Meanwhile, Japan's wholesale inflation accelerated at its fastest pace in three years, paving the way for a Bank of Japan rate hike next week. _Note: This summary is based on provisional market data._
🛢️ Global Oil Prices Dip After Iran-Israel Pause Strikes
• Market Impact: Global oil prices fell on Tuesday, reversing most of the previous session's gains. Brent crude futures dropped by 91 cents (1%) to US$ 93.34 a barrel, while U.S. West Texas Intermediate (WTI) declined by US$ 1.13 (1.2%) to US$ 90.17 a barrel. • Geopolitical Drivers: The price drop follows announcements from both Iran and Israel that they have halted direct attacks on each other following an appeal from U.S. President Donald Trump. This paused a previous 5% price surge triggered by renewed Israeli strikes in Iran and Lebanon. • Market Sentiment & Risks: Analysts note that investors remain cautious as a lasting peace deal remains elusive. Tehran warned it would resume strikes if Israel continues attacking Hezbollah in Lebanon, while Israel vowed to respond with force to any new Iranian attacks. • Supply Disruptions: A key focus of ongoing Washington-Tehran peace talks is the reopening of the Strait of Hormuz, which previously handled about a fifth of global oil supplies before U.S. and Israeli airstrikes began in late February. Tensions remain high as U.S. forces recently disabled an unladen oil tanker in the Gulf of Oman for violating the ongoing blockade against Iran.
Steady Start for Secondary Bond Market Ahead of Rs. 150 Bn Auction 📈
• Market Sentiment: Rates held broadly steady as secondary bond market activity remained subdued. Investors adopted a wait-and-see approach due to Middle East geopolitical tensions and an action-packed week of back-to-back Treasury auctions. • Bond Yield Performance: • 15.09.27 maturity traded at 11.00% • 15.02.28 maturity traded at 11.75% • 15.06.29 maturity traded at 12.05% • 01.08.30 maturity fluctuated between 12.12% - 12.18% • 15.10.30 maturity traded at 12.30% • Upcoming T-Bond Auction: A massive Rs. 150 Bn Treasury Bond auction is scheduled for Thursday, 11 June, structured across three maturities: • 15 May 2030: Rs. 70 Bn offered (11.00% coupon) • 15 Dec 2032: Rs. 60 Bn offered (11.50% coupon) • 1 Jul 2037: Rs. 20 Bn offered (10.75% coupon) • _Settlement date_: 15 June 2026. • Money Market Liquidity: The market recorded a net liquidity surplus of Rs. 63.25 Bn. Market participants deposited Rs. 88.47 Bn at the Central Bank’s SDFR (8.25%) and withdrew Rs. 25.22 Bn from the SLFR (9.25%). Weighted average rates for overnight call money and Repo stood at 9.17% and 9.21% respectively. • Forex Market: The Sri Lankan Rupee weakened slightly against the US Dollar. Spot contracts closed at Rs. 337.00/337.35, compared to the previous day's close of Rs. 335.75/336.25. The total traded USD/LKR volume stood at US$ 78.50 Mn on 5 June 2026.
📉 CSE Opens Week in Red: ASPI Down 1.57% Amid Interest Rate Concerns
• Market Performance: The Colombo stock market started the week down, driven by rising interest rates and Middle East tensions. Only 23 stocks advanced while 227 declined. The All Share Price Index (ASPI) dropped 1.57% (-340.85 points) to 21,403.28, and the S&P SL20 fell 0.92% (-55.58 points) to 5,968.42. • Turnover & Trading: Daily market turnover reached over Rs. 2.6 Bn with 88.15 million shares traded. High Net Worth (HNW) and institutional participation remained strong, driven by crossings in John Keells Holdings (JKH). Retail trading remained at average levels. Foreign investors recorded a net outflow of Rs. 54.1 Mn. • Sector & Stock Breakdowns: • Capital Goods: Led market turnover with a 37% share, though the sector index lost 1.02%. JKH dipped 20 cents to Rs. 19.80, and ACL Cables dropped Rs. 2.20 to Rs. 94.60. • Banking: Second largest turnover contributor (collectively with Food & Beverage at 31%); the sector index fell 0.61%. Hatton National Bank rose 75 cents to Rs. 392, while Commercial Bank lost 50 cents to Rs. 201.75. • Top Drags: The primary negative contributors dragging down the ASPI were Melstacorp (MELS), Bukit Darah (BUKI), Hayleys (HAYL), Sampath Bank (SAMP), and LOLC. Retail interest was visible in apparel & textiles via Hela Apparel Holdings, alongside ACME Printing and Citrus Leisure.
📈 Global Tech & Geopolitical Fears Trigger Sharp Market Jitters
Global stock markets faced immense volatility on Monday as an aggressive sell-off in technology shares and renewed Middle East tensions rattled investor sentiment, though US markets managed a partial recovery. • Global Market Impact: • Asia: South Korea’s tech-heavy Kospi index plunged 8.3% after triggering a 20-minute trading halt (circuit breaker) to prevent panic trading. Chipmaker Samsung closed down 10%. Japan's Nikkei index shed 3.9%. • US & Europe: The Nasdaq managed a 1.2% recovery, while the S&P 500 rose 0.7% following sharp losses on Friday (Nasdaq’s biggest single-day drop in over a year at -4.0%). European markets traded lower but saw smaller losses, with the UK's FTSE 100 reversing early losses to close slightly higher. • Key Market Drivers: • AI Overvaluation: Investors are aggressively repositioning capital amid fears that heavy investments into artificial intelligence (ICT/BPM and tech adjacent infrastructure globally) may be overvalued. • Macroeconomic Shocks: A lower-than-expected US unemployment rate raised concerns that interest rates will stay high or climb further. • Energy & Inflation: A sudden rise in oil prices—fueled by fresh strikes exchanged between Iran and Israel following an April ceasefire—has renewed global inflation fears. _Note: Market sentiments remain highly volatile as traders monitor energy costs and tech sector valuations._
📉 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)