Stock market ends 2024 with highest ever value of Rs. 5.69 trillion

• Benchmark ASPI gives 50% return, and 58.4% by S&P SL20 highest in past three years
• Over Rs. 1.5 t in value added in last quarter of 2024

The CSE Colombo stock market yesterday ended 2024 recording its highest ever value of Rs. 5.69 trillion whilst providing 50% return to long-term investors.

Value of the market finished 2024 at a record Rs. 5.69 trillion, up by 34% from last year. Over Rs. 1.5 trillion was added in market capitalisation in the last quarter. The previous highest market capitalisation was Rs. 5.48 trillion in 2021.

Ending a bullish month and an eventful year, the benchmark All Share Price Index provided a 49.66% return whilst the active S&P SL20 performed better with 58.46% return.

Both indices also closed at their highest levels in the history - the ASPI at 15,944.61 after opening 2024 at 10,654.16 and the S&P SL20 at 4,862.10 after opening the year at 3,068.36

The 2024 return is also the highest in three years with the previous best in the recent past being 80.5% in 2021. Last year the ASPI gained by 25.5% and in 2022 the return was 30.6%.

The year 2024 also marked the sixth consecutive year of gain at the Colombo Stock Exchange (CSE). Analysts viewed this achievement as significant in the history of the CSE given multiple crises the country faced starting Easter Sunday attacks in 2019, the COVID pandemic and the political and economic crisis in 2022.

The CSE however has provided much higher returns previously. For example, in 2009, ASPI grew by 125% and by 96% in 2010. 

In terms of S&P SL20, the 2024 performance was the highest since 2021’s return of 60.47%. Last year, S&P SL20 gained by 16.42% and by 37.7% in 2022.

Average daily turnover in 2024 was Rs. 2.23 billion up from Rs. 1.7 billion in 2023 but lower in comparison to 2022 (Rs. 2.97 billion) and 2021 (Rs. 4.88 billion).

The stock market remained bullish ever since the 21 September Presidential Election at which National People’s Party (NPP) candidate Anura Kumara Dissanayake was victorious followed by a landslide at the Parliamentary election in November. Apart from political stability, continued progress in the IMF’s four-year Extended Fund Facility (EFF) program, completion of the External Debt Restructuring and improved macroeconomic fundamentals such as rebound in economic growth, low interest rates and competitive exchange rate were some of the other factors boosting investor sentiments and outlook for prospects for listed equities.

On the last day of trading for 2024, the ASPI yesterday gained by 117 points or 0.7% and the S&P SL20 by 1%. Turnover was Rs. 7.7 billion involving 229.7 million shares.

Turnover was dominated by HNB (Rs. 688 million), Commercial Bank (Rs. 593.6 million), Sanasa Development Bank (Rs. 464.3 million), DFCC Bank (Rs. 421 million) and Pan Asia Bank (Rs. 338.6 million).

First Capital said the bourse experienced positive sentiment and increased gains amidst the increased participation from retail investors. The most significant contributors towards the positive index were NDB, DFCC, COMB, HAYL, and CFIN. Mid-sized Banks saw positive movement in the market, with notable gains in stocks such as SDB, NDB and PABC. Turnover marked an increase of 26.3%, from the monthly average. The Banking sector led the turnover by 47%, followed by the Capital Goods and Diversified Financials sectors jointly contributing 27% of the overall turnover. The market also saw a net foreign inflow of Rs. 130 million.

NDB Securities said indices closed in green as a result of price gains in counters such as National Development Bank, DFCC Bank and Commercial Bank.

High net worth and institutional investor participation was noted in Commercial Bank, Hatton National Bank and Aitken Spence. Mixed interest was observed in Sanasa Development Bank, DFCC Bank and Pan Asia Banking Corporation whilst retail interest was noted in SMB Leasing nonvoting, LVL Energy Fund and Waskaduwa Beach Resort.

The Banking sector was the top contributor to the market turnover (due to Hatton National Bank, Commercial Bank, Sanasa Development Bank, DFCC Bank and Pan Asia Banking Corporation) whilst the sector index gained 1.86%. The share price of Hatton National Bank increased by Rs. 2.50 to Rs. 319.75. The share price of Commercial Bank gained Rs. 1.75 to Rs. 144.75. The share price of Sanasa Development Bank moved up by Rs. 4.40 to Rs. 45.90. The share price of DFCC Bank recorded a gain of Rs. 6.00 to Rs. 113.75. The share price of Pan Asia Banking Corporation appreciated by Rs 2.10 (6.38%) to Rs. 35.