Verified

Foreign selling dominates market sentiment

While domestic sentiment appeared largely mixed yesterday, foreign selling dominated overall investor sentiment, prompting a modest upward adjustment in the yield curve. Investor participation and trading volumes appeared moderate.

Activity was yet again clustered around mid-tenors with 15.10.2030 trading at 11.60% to 11.65%. In the 2031 segment, 15.03.2031 traded within the narrow range of 11.80% to 11.83% while 01.12.2031 traded higher at 11.90%. Further along the curve, 01.11.2033 changed hands at 12.37% while 15.06.2034 and 15.09.2034 both traded from 12.55% to 12.60%. Finally, at the belly end of the curve, 15.03.2035 and 15.06.2035 were seen trading at 12.65% and 12.66% respectively.

On the external front, the LKR depreciated against the USD, standing at LKR 332.31/USD, compared to LKR 332.23/USD seen earlier. Market liquidity in the banking system expanded to LKR 391.50bn compared to LKR 378.78bn recorded previously.