CSE stages strong recovery

Wednesday, 9 April 2025 00:33 - - {{hitsCtrl.values.hits}}

Having lost nearly Rs. 500 billion in value in the past three sessions, the Colombo stock market yesterday produced a great comeback with indices achieving the highest gain for the year so far.

The benchmark ASPI gained by 3% and the active S&P SL20 shot up by 4.65%. The CSE managed to enhance its value by Rs. 170 billion yesterday. It also reduced the Year to Date negative return to 5% from 8% on Monday. Global and Asian markets also staged a recovery after Monday’s sell off.

Turnover however was a low Rs. 2.9 billion involving 148.7 million shares.

First Capital said driven by the global market recovery, the Colombo Bourse rebounded from the “Black Monday” wild turn and reversed the largest intraday loss since 8 April 2022 with ASPI surging by 467 index points. As a result, bargain hunting took place in the market, with investor sentiment shifting towards a buying outlook, leading the ASPI to close the day in the green at 151,128.

Banking sector stocks such as COMB, SAMP, and HNB, along with JKH and HAYL, exerted significant upward pressure on the index. The Banking sector accounted for 33.0% of the total turnover, while the Capital Goods and Food, Beverage, and Tobacco sectors collectively contributed 35% of the overall turnover. Foreign investors remained net buyers, recording a net foreign inflow of Rs. 48.3 million.

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, Access Engineering, and Diesel & Motor Engineering. Mixed interest was observed in Sampath Bank, Commercial Bank and Hatton National Bank whilst retail interest was noted in Nation Lanka Finance, Hela Apparel Holdings and Waskaduwa Beach Resort.

The banking sector was the top contributor to the market turnover (due to Sampath Bank, Commercial Bank and Hatton National Bank) whilst the sector index gained 4.77%. The share price of Sampath Bank increased by Rs. 4.50 to Rs. 107.25. The share price of Commercial Bank recorded a gain of Rs. 7.75 to Rs. 130.25. The share price of Hatton National Bank appreciated by Rs. 11.50 to Rs. 280.50.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings and Access Engineering) whilst the sector index increased by 4.85%. The share price of John Keells Holdings gained by one Rupee to Rs. 19.70. The share price of Access Engineering moved up by Rs. 1.80 to Rs. 38.