CSE enjoys sharp gain on improved investor sentiment

Friday, 21 March 2025 00:30 - - {{hitsCtrl.values.hits}}

The Colombo stock market yesterday gained sharply with improved turnover on the back of buying interest from investors.

The benchmark ASPI gained by 1.67% or 256 points whilst the active S&P SL20 shot up by over 2%.

Turnover was Rs. 3.67 billion involving 197 million shares. Of the quantity was 145.6 million shares of Sierra Cables done for Rs. 1.8 billion which is believed to be a transfer. First Capital said the market saw a bullish momentum reversing some of the lost ground in recent days.

The positive contributors for the day were COMB, HNB, JKH, SAMP and DFCC. Despite the overall market gains, retail participation remained low compared to yesterday, with the majority of turnover driven by HNW investors. The Banking sector was the primary driver behind the market’s positive movement.

Wednesday’s positive buying sentiment continued into yesterday, supporting the overall market uptick.

The market showed resilience, with strong contributions from Banking stocks, while retail activity remained subdued. Turnover was dominated by 50% by SIRA consisting of a large volume of 146 million shares. The Capital Goods sector was the most significant contributor to the overall turnover with a 58% share, followed by the Diversified Financials, and the Banking sectors jointly accounting for 25%. Foreign investors turned into net sellers, with a net outflow of Rs. 35.2 million. NDB Securities said high net worth and institutional investor participation was noted in Citizens Development Business Finance, Hatton National Bank and John Keells Holdings. Mixed interest was observed in Sierra Cables, Ceylon Cold Stores and Sampath Bank whilst retail interest was noted in Hela Apparel Holdings, Waskaduwa Beach Resort and Marawila Resorts.

The Capital Goods sector was the top contributor to the market turnover (due to Sierra Cables and John Keells Holdings) whilst the sector index gained 1.79%. The share price of Sierra Cables closed flat at Rs. 15.50. The share price of John Keells Holdings recorded a gain of 40 cents to Rs. 20.50.

The Diversified Financials sector was the second highest contributor to the market turnover (due to Citizens Development Business Finance) whilst the sector index increased by 1.91%. The share price of Citizens Development Business Finance closed flat at Rs. 229.50.

Ceylon Cold Stores and Hatton National Bank were also included amongst the top turnover contributors. The share price of Ceylon Cold Stores moved up by Rs. 1.10 to Rs. 78. The share price of Hatton National Bank appreciated by Rs. 5.75 to Rs. 309.50.

Separately Lankem Development PLC announced an interim dividend of one Rupee per share.

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