Market News
View all(67)Sri Lanka Money Market Surplus Hits Rs. 296 Bn 📈
• Liquidity & Rates: Net market liquidity surged to Rs. 296.45 Bn. Significant participation was seen in the Central Bank’s Standing Deposit Facility (SDFR) at 7.25%. Overnight call money and repo rates averaged 7.65% and 7.69% respectively. • Treasury Bill Auction: The Rs. 90 Bn auction was fully subscribed (3.16x oversubscribed). Yields dropped for the 4th consecutive week: • 91-day: 7.72% (-8 bps) • 182-day: 8.07% (-10 bps) • 364-day: 8.31% (-2 bps) • Bond Market Rally: The secondary government securities market saw robust activity and falling yields. Focus shifted to the upcoming Rs. 51 Bn Treasury Bond auction today, featuring 2030 and 2036 maturities. • Forex Market: The Sri Lankan Rupee (LKR) remained stable, with the USD/LKR spot contract closing slightly stronger at Rs. 309.35/40 compared to the previous day’s Rs. 309.43/47.
CSE Ends Losing Streak Amid Market Volatility 📈
The Colombo Bourse closed marginally higher yesterday, recovering from a two-day decline despite a session marked by early volatility and cautious sentiment. • Market Performance Overview The All Share Price Index (ASPI) gained 0.02% (4.59 points) to reach 23,655.68. The S&P SL20 index followed suit, rising 0.09% (6.11 points) to settle at 6,611.52. • Turnover and Trading Volume Daily turnover reached Rs. 3.35 Bn, with approximately 170.9 million shares traded. However, market breadth remained negative as 132 counters declined against 105 gainers. • Foreign and Investor Activity Foreign investors recorded a net outflow of Rs. 64 million. High Net Worth (HNW) and retail participation remained subdued, contributing to the day’s cautious trading tone. • Sector Highlights The capital goods sector dominated turnover with a 20% share. This was supported by the food, beverage & tobacco and diversified financials sectors, which collectively contributed 32% to the day's total. • Key Stock Movers Top Contributors: NHL, CFIN, CARG, John Keells Holdings (JKH), and LLUB. Turnover Leaders: Samson International (Rs. 220 Mn), UB Finance (Rs. 172 Mn), and Sierra Cables (Rs. 149 Mn).
## 📈 CSE Edges Higher Amid Subdued Trading
The Colombo Stock Exchange (CSE) closed with marginal gains today in a relatively sluggish session characterized by dominant domestic participation and a net foreign outflow. • Market Indices All Share Price Index (ASPI): Up 4.59 points (0.02%) to close at 23,655.68. S&P SL20 Index: Up 6.11 points (0.09%) to close at 6,611.52. • Liquidity & Turnover Total Turnover: Rs. 3.35 Bn. Trading activity remained slow compared to recent averages, reflecting cautious investor sentiment. • Investor Participation Domestic Investors: Formed the backbone of the day's activity with Rs. 3.29 Bn in purchases and Rs. 3.22 Bn in sales. Foreign Investors: Participation was notably low. Foreign purchases stood at Rs. 56 Mn against sales of Rs. 120 Mn, resulting in a net foreign outflow of Rs. 64 Mn. • Market Context The marginal uptick in indices despite low volume suggests a holding pattern in the capital markets, with local retail and institutional players driving the limited momentum while foreign interest remains muted.
📈 Secondary Bond Market Maintains Bullish Momentum
Sri Lanka's secondary bond market continued its positive trend on February 10, with yields edging lower across key maturities. Robust trading volumes reflected strong investor interest, particularly in mid-to-long-term tenors. • Market Sentiment & Yields: Demand was highest for 2029–2037 maturities. Notable trades included the 15.03.28 maturity at 8.98% and the 01.07.37 maturity at 10.95%. The short end of the curve remained consolidated, with the 01.08.26 maturity trading at 8.10%. • Treasury Bill Auction: A Rs. 90.00 Bn auction is scheduled for today (Feb 11), featuring: 91-day: Rs. 20 Bn 182-day: Rs. 50 Bn 364-day: Rs. 20 Bn The total offer is slightly below the maturing volume of Rs. 91.50 Bn. In the previous auction, weighted average rates fell for the third consecutive week, with the 91-day bill reaching 7.80% (-4 bps). • Liquidity & Money Market: Net liquidity surplus remains high at Rs. 282.22 Bn. Overnight call money and repo rates averaged 7.68% and 7.72%, respectively. Secondary market transacted volume stood at Rs. 26.87 Bn (as of Feb 9). • Forex Performance: The LKR remained stable against the US$, with spot contracts closing at Rs. 309.40/45. Daily traded volume was recorded at US$ 118.80 Mn.
### CSE Ends in Red as Profit-Taking Halts Early Rally 📈
The Colombo Bourse closed in negative territory for the second consecutive session, failing to sustain an early spike that saw the ASPI briefly cross the 23,800 mark. Selling pressure and profit-taking by investors led to a late-session slide. Market Performance • ASPI: Down 0.43% (-103.17 points) to close at 23,651.09. • S&P SL20: Declined marginally by 0.05% (-3.27 points) to 6,605.41. • Turnover: Totaled Rs. 3.54 Bn on 158.2 Mn shares. • Foreign Activity: Net foreign outflow of Rs. 465.9 Mn. Sector Highlights • Capital Goods: Led market turnover with a 20% share, driven by active trading in ACL Cables. • Materials: Second highest contributor, headlined by Tokyo Cement Company, though the sector index fell 0.20%. • Diversified Financials: Collectively contributed to 26% of the daily turnover alongside the materials sector. Stock Movements • Laggards: Major negative contributors included Senkadagala Finance (SFCL), Cargills (CARG), and Dialog (DIAL). • Gains & Volume: Share prices of 147 companies declined while 67 advanced. Notable interest was seen in apparel & textiles via TJ Lanka and the construction supply chain through Tokyo Cement. Note: Based on provisional data for February 10, 2026.
ASPI Falls Over 100 Points Amid Moderating Turnover 📉
The Colombo Stock Exchange (CSE) closed on a weaker note today as investor enthusiasm cooled, leading to a significant dip in the broader market index. • Market Indices: The All Share Price Index (ASPI) dropped by 103.17 points (-0.43%) to close at 23,651.09. The blue-chip S&P SL20 Index showed more resilience, declining marginally by 3.27 points to settle at 6,605.41. • Liquidity & Turnover: Market turnover moderated to Rs. 3.54 Bn, a notable decrease from recent high-activity sessions, indicating a cautious approach by participants. • Investor Participation: Local Investors: Remained the primary driver of the market, accounting for Rs. 3.51 Bn in purchases and Rs. 3.04 Bn in sales. Foreign Investors: Activity was subdued and leaned toward selling, with a net foreign outflow of Rs. 466 Mn (Purchases: Rs. 34 Mn vs. Sales: Rs. 500 Mn). The overall sentiment reflects a temporary retreat as the market seeks a new support level following recent gains.
📈 Investor Call on Performance-Linked Bonds
The Sri Lankan Government has scheduled an investor call for tomorrow, 11 February 2026, to provide updates on its post-restructuring debt strategy and performance-linked securities. • Bond Overview: The session focuses on five series of Macro-Linked Bonds (MLBs) and Governance-Linked Bonds (GLBs) with maturities between 2030 and 2038. • Debt Reporting: Updates will be based on the Debt Report published on 31 December 2025, detailing progress against agreed fiscal and governance benchmarks. • Macro-Linked Features: Discussions will cover the performance-linked triggers, where interest rates or principal amounts may adjust based on Sri Lanka’s GDP performance and debt sustainability framework. • Governance Benchmarks: Updates on governance-related developments relevant to the GLBs, which incentivize transparency and fiscal accountability through potential coupon step-downs. • Call Schedule (7:00 p.m. IST): Intended to maintain transparency with international bondholders and market participants following the country's complex debt restructuring. Context: These innovative instruments are central to Sri Lanka’s recovery, linking debt servicing costs directly to the nation's economic health and reform progress.
📈 CSE Opens Week in Red Amid Foreign Net Selling
The Colombo stock market started the week on a negative note as investor caution and significant foreign outflows dampened sentiment. Despite a brief intraday gain of 108 points, the benchmark indices succumbed to late-session selling pressure. • Overall Figures • ASPI: 23,754.26 (Down 0.20% | -47.70 points) • S&P SL20: 6,608.68 (Down 0.09% | -6.04 points) • Total Turnover: Rs. 6.3 Bn • Foreign Interest: Net outflow of Rs. 1.4 Bn (Net sellers) • Sector Breakdowns • Food, Beverage & Tobacco: Led daily activity with a 28% share of turnover (Rs. 1.79 Bn). Lanka Milk Foods (LMF.N) was a standout, gaining 9.08% on Rs. 0.85 Bn turnover. • Materials & Capital Goods: Collectively contributed 34% to total market turnover. • Diversified Holdings: Index-heavy JKH was among the top negative contributors to the ASPI. • Market Highlights • Cumulative earnings for 78 companies released so far for the December quarter reached Rs. 49.55 Bn, reflecting a healthy 18.02% YoY growth. • High net worth and retail participation remained strong, though retail investors engaged in profit-taking on penny stocks. • Large-scale "crossings" accounted for 36% (Rs. 2.28 Bn) of the total turnover, with CIC.N recording a major transaction of Rs. 0.87 Bn.
📈 Asia Markets Surge: Record Highs & Tech Rebound Asian equities jumped on Monday as a landslide election win in Japan and a recovery in U.S. chip stocks bolstered investor sentiment across the region.
• Global Market Movements • Japan’s Nikkei surged 4.4% to an all-time high following PM Sanae Takaichi's two-thirds majority win, signaling aggressive fiscal stimulus and tax cuts. • South Korea’s tech index climbed 4.3%, while the broader MSCI Asia-Pacific (ex-Japan) index rose 2.2%. • Chinese blue chips edged up 1.3% ahead of key inflation data; U.S. and European futures also trended higher. • Tech & Commodity Highlights • The semiconductor sector led the rebound, with Nvidia and AMD both jumping over 8% after a period of heavy selling. • U.S. tech giants are projected to spend US$ 650 Bn on AI-related capital expenditure this year. • Silver added 3.9% (US$ 81.03) and Gold rose 0.8% (US$ 5,000/oz), recovering from recent wild fluctuations. • Economic Outlook & Policy • Investors are betting on a U.S. Fed rate cut by June, with upcoming jobs and inflation data expected to influence stimulus paths. • The Japanese Yen weakened to 156.74 per dollar as markets anticipated debt-funded expansionary policies. • Oil prices dipped slightly (Brent at US$ 67.52) amid ongoing U.S.-Iran negotiations and regional tensions. _Note: Based on provisional market data as of February 9, 2026._
Sri Lanka Foreign Debt Holdings Break 2-Year High 📈
• Government Securities & Foreign Inflows: Foreign holdings in rupee-denominated Government securities surged to Rs. 154.02 Bn as of 5 February, the highest level since October 2023. This reflects a Rs. 7.46 Bn net inflow for the week and a massive 291% recovery from the 2024 low of Rs. 39.38 Bn. • Money Market & Liquidity: Inter-bank liquidity reached its highest point in nearly 11 years, hitting a surplus of Rs. 275.19 Bn. Weighted average rates for Call Money and Repo remained stable at 7.70% and 7.75%, respectively, aligning closely with policy rates. • Treasury Bill Auction: Rates declined for the third consecutive week: • 91-day: 7.80% (-4 bps) • 182-day: 8.17% (-9 bps) • 364-day: 8.33% (-3 bps) The auction raised Rs. 132 Bn in total, exceeding the initial Rs. 120 Bn target due to strong demand in the second phase. • Secondary Bond Market: A strong bullish rally saw yields drop across the curve. High liquidity prompted investors to move toward longer tenors (2029–2035). Market attention now shifts to a Rs. 51 Bn mini Bond auction scheduled for 12 February. • Currency (Forex): The USD/LKR spot rate saw a slight depreciation, closing at Rs. 309.37/42 compared to the previous week's Rs. 309.25/35. Average daily traded volume stood at $ 91.53 Mn.
📈 CSE Ends Week with Positive Gains Amid Foreign Selling
The Colombo stock market showed resilience, closing the week on a positive note driven by high net worth (HNW) participation, despite persistent foreign outflows. • Overall Market Performance The ASPI gained 0.14% (+32.97 points) to end at 23,801.96, while the S&P SL20 rose 0.36% (+23.57 points) to 6,626.38. Total daily turnover reached approximately Rs. 9.1 Bn with 311 million shares traded. • Foreign Investor Activity Foreigners remained net sellers for the second consecutive week. • Daily Net Outflow: Rs. 2.3 Bn • YTD Net Foreign Selling: Rs. 23.1 Bn • YTD Net Outflow (Total): Rs. 11.8 Bn • Sector & Stock Highlights • Banking Sector: Led the market with a 33% turnover share. Commercial Bank (COMB) saw a massive crossing of Rs. 2.2 Bn (23.9% of total turnover), closing at Rs. 225. • Capital Goods: Second-highest contributor; Colombo Dockyard rose to Rs. 154.75. • Apparel: Teejay Lanka featured among top turnover contributors, gaining Rs. 1.10 to close at Rs. 38.40. • Top Contributors: ACME, John Keells Holdings (JKH), Sampath Bank (SAMP), and HNB. • HNW & Retail Participation Market activity was heavily supported by HNW investors, with crossings accounting for 41.9% (Rs. 3.8 Bn) of the day's turnover. Retail interest remained active in counters like Luminex and Renuka Agri Foods.
CSE Market Update - 06/02/2026 📈
The Colombo Stock Exchange (CSE) closed on a positive note today, with both major indices gaining as investor sentiment remains robust. Turnover saw a significant surge, exceeding Rs. 11.11 Bn. • Overall Market Performance ASPI: 23,768.99 (+34.49 points | +0.15%) S&P SL20: 6,602.81 (+5.47 points | +0.08%) Market Cap: Rs. 8.48 Tn (Approx. US$ 28.18 Bn) • Equity Turnover & Volume Total Turnover: Rs. 11.11 Bn (up from Rs. 8.24 Bn YoY/Prev) Share Volume: 441.23 Mn shares traded Total Trades: 45,331 • Investor Activity Domestic Purchases: Rs. 6.89 Bn Foreign Purchases: Rs. 4.22 Bn Foreign Sales: Rs. 5.25 Bn Net Foreign Flow: Net outflow of Rs. 1.03 Bn today • Sector & Corporate Highlights Financials: Continued to dominate market activity, representing 60.9% of the S&P SL20 index weight. Banking & Industrials: Significant movements observed in Commercial Bank, HNB, and Hayleys. Dividends: JAT Holdings and Dialog Axiata announced cash dividends; Renuka Foods announced a sub-division of shares. Debt: DFCC Bank debenture issue was reported as oversubscribed. _Data based on provisional daily market statistics._