The Colombo stock market managed to close on the up influenced by positive news on the external debt restructuring though activity levels were moderate.

The benchmark ASPI gained by 61 points or 0.6% and the active S&P SL20 by 7 points of 0.2%. Turnover was Rs. 735.6 million involving 36.3 million shares.

Asia Securities said the market witnessed brief recovery as investors returned to front-line stocks at lower levels. CALT (+5.9%), CFVF (+3.6%), FCT (+3.1%), ACL (+3.6%), LIOC (+1.2%), DIST (+1.9%), and MGT (+1.0%) saw buying interest during the session, supporting the ASPI. 

The market saw improved momentum compared to recent sessions, driven by the announcement of a debt agreement between the GoSL and its Official Creditor Committee (OCC) to restructure $ 5.9 billion of outstanding public debt, alleviating uncertainties surrounding External Debt Restructuring. With this development, the Government moves a step closer to securing the second IMF tranche of $ 334 million. This also resulted in renewed buying in banking sector counters SAMP (+0.9%), COMBN (+0.2%), PABC (+2.9%), DFCC (+3.8%), and NDBN (+2.8%). The ASPI stayed in positive territory throughout the session, albeit with a gradual pace, eventually crossing the 10,500 level and closing at 10,513 (+61 points). DFCC (+8 points), NDBN (+6 points), and SAMP (+5 points) came in as the major index drivers for the day. The breadth of the market turned positive with 106 price gainers and 41 decliners.

Asia also said foreigners recorded a net outflow of Rs. 16.9 million. Net foreign buying topped in COMB.N at Rs. 20.1 million and selling topped in JKH at Rs. 21.2 million.

First Capital said the Bourse rebounded into positive territory following two consecutive sessions of losses, driven by a modest uptick in investor sentiment throughout the day. 

The positive momentum was fuelled by the news of official creditors reaching an agreement to restructure the debt deal. Index moved on a gradual uptick throughout, primarily led by strong performance in the Banking sector, with heightened foreign buying interest in COMB and SAMP. Moreover, the Food, Beverage & Tobacco sector experienced investor interest spanning largely across DIST and LMF. Hotel sector counters too contributed to the day’s gain led by active participation. In the latter part of the session, the index saw a sharp upswing, closing at 10,513, a gain of 61 points for the day. 

NDB Securities said high net worth and institutional investor participation was noted in Hayleys Fabric, John Keells Holdings, and Windforce. Mixed interest was observed in Expolanka Holdings, Sampath Bank and Lanka Milk Foods whilst retail interest was noted in Industrial Asphalts, Browns Investments and Nation Lanka Finance. 

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings) whilst the sector index edged down by 0.08%. The share price of John Keells Holdings lost 75 cents to Rs. 186.50.

The Banking sector was the second highest contributor to the market turnover (due to Sampath Bank) whilst the sector index increased by 0.84%. The share price of Sampath Bank moved up by 60 cents to Rs. 67.60.

Expolanka Holdings, Windforce and Lanka Milk Foods were also included among the top turnover contributors. The share price of Expolanka Holdings increased by one Rupee to Rs. 130. The share price of Windforce closed flat at Rs. 19. The share price of Lanka Milk Foods appreciated by Rs. 1.50 to Rs. 219.75.

External debt restructuring achieves landmark step