Sector accounts for Rs. 1 b turnover; index up 2.5%
Investors yesterday turned banks savvy as a host of popular stocks gained sharply on a fresh round of demand.
The banks, finance and insurance sector accounted for the highest turnover of Rs. 1 billion in addition to the sector index gaining by a significant 2.5% outperforming the market convincingly.
Of the actively traded sector stocks, Sampath Bank gained highest up by 7.6% to Rs. 271 generating a turnover of Rs. 111 million followed by NDB up 7.5% to Rs. 380 accounting for Rs. 117.5 million turnover. The Price Earnings Ratio of these two stocks is 20 and 15 times respectively, and below that of the market.
Commercial Bank which created the highest turnover of Rs. 467 million within the sector, rose by over 1% to Rs. 265.20. COMBank saw 1.7 million of its shares traded including four crossings with the biggest being 386,800 at Rs. 260 each. Sampath saw a crossing of 85,000 shares at Rs. 255 each.
HNB, DFCC, Seylan, NTB also gained in tandem with bullish investor sentiments on the sector. A pick up in credit demand from private sector as well anticipated higher earnings are some of the reasons for improved investor appetite.
- Recent developments in the financial sector
- Global banks grappling to evolve new business models