Budget keeps CSE up; Rs. 775 m net foreign inflow

Tuesday, 18 February 2025 01:15 - - {{hitsCtrl.values.hits}}

The Colombo stock market gained by over 1% yesterday, boosted by what investors saw as a positive Budget presented by President and Finance Minister Anura Kumara Dissanayake.

The benchmark ASPI gained by 1.3% and the active S&P SL20 by 1.4%.

Turnover was Rs. 5.4 billion involving 133 million shares.

First Capital said the bourse saw a day of positive sentiment and heightened momentum, supported by the improvement in investor confidence post unveiling of the maiden Budget of the newly-formed Government.

Most of the investor attention was focused on the Banking sector and Blue-chip stocks amidst increased participation from HNW investors. The most significant contributors to the positive index were CINS, MELS, NDB, SAMP, and HAYL. There was significant activity on CFVF and DIAL following the dividend announcement. Turnover marked a 4.9% decrease from the monthly average and the Insurance sector led turnover at 19%, followed by Banking and Diversified Financials jointly contributing 37% of overall turnover.

There was a net foreign inflow of Rs. 777.4 million.

Asia Securities said the indices started the week in green, driven by notable price gains in banking stocks, including PABC (+5.5%), NTBN (+4.1%), SAMP (+1.9%), and COMBN (+1.2%). Furthermore, price gains in DIPD (+6.0%), HAYL (+3.7%), and TJL (+3.6%) closed in green, leading to a broad-based rally during the session. CINSN (+41 points), MELS (+20 points), and NDB (+16 points) came in as the largest contributors to the ASPI for the day. The market breadth was positive, with 125 price gainers and 92 decliners.

Turnover was led by CINSN (Rs. 912 million), CFVF (Rs. 358 million), and HNBN (Rs. 261 million).

Net foreign buying topped in CINS.N at Rs. 908.5 million and selling topped in TJL at Rs. 116.1 million.

NDB Securities said high net worth and institutional investor participation was noted in Ceylinco Holdings, LOLC Holdings, and Melstacorp. Mixed interest was observed in First Capital Holdings, Hatton National Bank, and Dialog Axiata, whilst retail interest was noted in SMB Leasing nonvoting, LOLC Finance, and Hela Apparel Holdings.

The Insurance sector was the top contributor to the market turnover (due to Ceylinco Holdings) whilst the sector index gained 3.56%. The share price of Ceylinco Holdings increased by Rs. 235.25 to Rs. 3,935.50.

The Diversified Financials sector was the second highest contributor to the market turnover (due to First Capital Holdings and LOLC Holdings) whilst the sector index increased by 0.87%. The share price of First Capital Holdings gained Rs. 3.10 to Rs. 44.60. The share price of LOLC Holdings recorded a gain of Rs. 3.25 to Rs. 694.

Hatton National Bank and Dialog Axiata were also included amongst the top turnover contributors. The share price of Hatton National Bank moved up by Rs. 2.25 to Rs. 333.75. The share price of Dialog Axiata appreciated by Rs. 0.40 to Rs. 14.

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