CSE gains to 8-month high

• Banking counters drive the indices to 7th session of gains

The Colombo stock market sustained its upward momentum for the seventh consecutive day and to 8-month high with healthy turnover.

The active S&P SL20 gained by 1.3% and the benchmark ASPI by 0.6%. Turnover was Rs. 3.16 billion involving 73 million shares. Foreigners reverted to being net sellers.

Asia Securities said the ASPI marked its seventh consecutive session of gains driven by continued investor interest in banking stocks particularly HNBN (+2.2%), SAMP (+0.5%), DFCC (+1.4%), COMBN (+3.0%), NDB (+3.5%), and SEYBN (+4.2%). The index crossed the 11,700 mark to reach an intra-day high of 11,753 (+128 points), however it consolidated in the second half of the session to close at 11,698 (+74 points). 

COMBN (+18 points), HNBN (+13 points), and NDB (+8 points) came in as the major drivers of the ASPI. Overall, 90 stocks ended in green while 99 settled with losses.

Turnover picked up with off-board transactions accounting for 20% led by MELS (Rs. 315mn), HNBN (Rs. 169mn), and SAMP (Rs. 118mn). 

Following four sessions of inflows, foreigners ended on the selling side with a net outflow of Rs. 221mn due to net selling in MELS (Rs. 1bn) while JKH (Rs. 227mn) saw increased foreign buying. 

First Capital said the bourse witnessed a sustained bullish trend driven by robust interest in the banking sector and selected Blue-chip counters. Bulls dominated the market, leading to continuous positive trading throughout the day, reaching an intraday high of 11,755 during midday before closing at an 8-month high of 11,698, gaining 74 points. Notably, banking sector shares such as COMB, HNB, and NDB continued to drive the index, leveraging their discounted prices. Buoyed by a resurgence in overall market sentiment and lower interest rates, funds began to flow from retailers to the equity market. 

Turnover was supported by retailers, HNWIs and institutional investors. Banking sector emerged as a major contributor, accounting for 42% of the overall turnover, fuelled by active trading both on and off the board.

NDB Securities said high net worth and institutional investor participation was noted in Melstacorp, Hatton National Bank and Sampath Bank. Mixed interest was observed in John Keells Holdings, DFCC Bank and CIC Holdings whilst retail interest was noted in LOLC General Insurance, Browns Investments and Amana Bank. 

The Banking sector was the top contributor to the market turnover (due to Hatton National Bank and Sampath Bank) whilst the sector index gained 2.25%. The share price of Hatton National Bank increased by Rs 4.25 to Rs. 195.25. The share price of Sampath Bank gained 40 cents to Rs. 78.70.

The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (due to Melstacorp) whilst the sector index increased by 0.20%. The share price of Melstacorp moved up by Rs 1.10 to Rs. 91.10.

John Keells Holdings and CIC Holdings were also included amongst the top turnover contributors. The share price of John Keells Holdings recorded a gain of 50 cents to Rs. 199. The share price of CIC Holdings declined by 40 cents to Rs 75.10.