Colombo stock market ends January with 7.4% gain

Saturday, 1 February 2025 00:36 - - {{hitsCtrl.values.hits}}

The Colombo stock market yesterday ended the new year’s first month with a welcome 7% gain amidst high average turnover.

The benchmark ASPI saw a 7.4% increase and the active S&P SL20 by 5.2%. The impressive upturn can be credited to bullish sentiments in mid-month. Yesterday the ASPI was almost flat whilst the S&P SL20 declined by 0.2%, a trend similar to Thursday. Turnover yesterday was Rs. 5.1 billion involving 197.6 million.

NDB Securities said the ASPI yesterday edged up as a result of price gains in counters such as Central Finance Company, The Colombo Fort Land & Building and Ambeon Holdings.

High net worth and institutional investor participation was noted in John Keells Holdings, Access Engineering and Seylan Bank nonvoting. Mixed interest was observed in Access Engineering, Teejay Lanka and Browns Investments whilst retail interest was noted in Hela Apparel Holdings, Softlogic Holdings and Nation Lanka Finance.

The Capital Goods sector was the top contributor to the market turnover (due to Access Engineering and John Keells Holdings) whilst the sector index edged up by 0.05%. The share price of Access Engineering decreased by Rs. 1.20 to Rs. 40.80. The share price of John Keells Holdings closed flat at Rs. 22.70.

The Banking sector was the second highest contributor to the market turnover (due to Commercial Bank and Hatton National Bank) whilst the sector index decreased by 0.27%. The share price of Commercial Bank gained 50 cents to Rs. 148.50. The share price of Hatton National Bank declined by Rs. 2.50 to Rs. 349.75.

Teejay Lanka was also included amongst the top turnover contributors with its share price gaining by Rs. 2 to Rs. 54.30.

First Capital said the bourse showed signs of recovery from Thursday, although slight volatility persisted. The top positive contributors to the index were CFIN, CFLB, GREG, TJL and TAP. There was an increase in HNW participation, while retail participation remained moderate. Market activity was influenced by the recently released earnings reports, with companies posting strong earnings seeing significant returns and turnover. Sentiment was particularly positive toward specific banking stocks and blue-chip companies. The Capital Goods sector was the most significant contributor to the overall turnover with a 33% share, followed by the Banking, and Food, Beverage and Tobacco sectors jointly contributing 25%. Foreign investors remained net sellers, with a net outflow of Rs. 405.6 million.