CSE rebound extends to second session

Friday, 6 March 2026 00:04 - - {{hitsCtrl.values.hits}}

The Colombo stock market yesterday extended its rebound for a second consecutive session, with value investors stepping in after the market opened the week with a record single-day fall triggered by panic selling linked to Middle East tensions.

“Stronger fundamentals and a robust macroeconomic recovery have boosted investor confidence recently, driving the ASPI to all-time highs. Despite early-session slowdowns, price corrections attracted buying as valuation discounts emerged for fundamentally sound stocks,” CT Smith Securities said, sharing its perspective after the ASPI had fallen 5.4% earlier in the week, marking the largest single-day drop in its history.

Yesterday the ASPI ended 1.13% on the up with 256.12 points at 22,833.53 and the active S&P SL20 ended up 1.07% or 68.14 points at 6,425.80.

Market turnover was nearly Rs. 5.7 billion on over 330 million shares traded with foreign investors emerging as net buyers with a net inflow of Rs. 189.4 million.

First Capital Research said buying sentiment in the market was underpinned predominantly by the banking sector and blue-chip stocks. The positive market breadth was weighed by JKH, DFCC, NDB, DIAL and COMB leading the gains.

Retail investor participation was moderate, whereas significant HNW participation was observed with HNBF’s contribution of Rs. 1.1 billion to the day’s total turnover. The diversified financials sector led daily turnover with a 39% share, followed by the banking and food, beverage and tobacco sectors, which collectively accounted for 30% of total turnover.

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

High net worth and institutional investor participation was noted in HNB Finance, Lanka Milk Foods and Commercial Bank. Mixed interest was observed in Lanka Credit and Business Finance, LOLC Holdings and Softlogic Capital whilst retail interest was noted in UB Finance Company, SMB Leasing and SMB Leasing non-voting.

The diversified financials sector was the top contributor to market turnover due to HNB Finance, Lanka Credit and Business Finance Limited and LOLC Holdings while the sector index gained 1.61%.

The share price of HNB Finance increased by Rs. 1.30 to close at Rs. 9.70. The share price of Lanka Credit and Business Finance Limited recorded a gain of Rs. 1.70 to Rs. 8.80 and LOLC Holdings appreciated by Rs. 12 to Rs. 568.

The banking sector was the second highest contributor to market turnover due to Commercial Bank while the sector index increased by 0.62%. The share price of Commercial Bank moved up by Rs. 1.75 to end at Rs. 215.25.

Lanka Milk Foods was also included amongst the top turnover contributors with the share gaining Rs. 6.80 to close at Rs. 93.