CSE gains to six-month high; ends March with over 7% return

The Colombo stock market yesterday rose to six months high with the month netting over 7% gain as investor sentiment strengthened especially following the shareholder approval to the Rs. 63 billion exit offer of Expolanka Holdings PLC on Wednesday night.

The active S&P SL20 gained by 0.5% and the benchmark ASPI was flat. Turnover rose to Rs. 3 billion involving 98.7 million shares.

In March, the ASPI gained by 7.4% and the S&P SL20 by 9.2%. Average daily turnover was Rs. 1.87 billion.

Asia Securities said the market ended on Friday higher as the indices closed in green for a third consecutive session with price increases in AHPL (+4.3%), HNB (+1.3%), COMB (+1.6%), NDB (+1.6%), HHL (+1.8%), HELA (+1.7%), and DIST (+1.1%).

COMBN (+9 points), HNB (+7 points), and JKH (+7 points) came in as the biggest index movers for the day. Overall, 82 stocks closed higher while 106 ended with losses.

Market turnover was led by HNB (Rs. 411 million), NDB (Rs. 239 million), and SAMP (Rs. 231 million).

Foreigners recorded a net inflow of Rs. 81.8 million. Net foreign buying topped in ACL at Rs. 60.6 million and selling topped in JKH at Rs. 55.6 million.

First Capital said the bourse extended its winning streak for the 3rd consecutive day, buoyed by the optimistic aftermath of CBSL’s decision to slash policy rates by 50bps.

The index started strong, reaching an intraday high of 11,507 before settling at a six-month high of 11,444, gaining 10 points. Notably, heavy buying emerged in the banking sector throughout the day, with COMB, HNB, and DFCC among the top contributors to the index. Additionally, HNB, NDB, SAMP, and COMB stood out as the top largest contributors to the market turnover during the day, with 47.2% of the contribution backed by major crossing transactions. Moreover, blue-chip favourites including JKH and MELS also made significant contributions to the index.

NDB Securities said high net worth and institutional investor participation was noted in Hatton National Bank, National Development Bank and Commercial Bank. Mixed interest was observed in Sampath Bank, John Keells Holdings and DFCC Bank whilst retail interest was noted in Hela Apparel Holdings, LOLC Finance and Browns Investments.

The Banking sector was the top contributor to the market turnover (due to Hatton National Bank, National Development Bank, Sampath Bank and Commercial Bank) whilst the sector index gained 0.87%. The share price of Hatton National Bank increased by Rs. 2.25 to Rs. 180. The share price of National Development Bank gained one Rupee to Rs. 68. The share price of Sampath Bank moved up by 10 cents to Rs. 80. The share price of Commercial Bank recorded a gain of Rs. 1.50 to Rs. 97.70.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings) whilst the sector index increased by 0.50%. The share price of John Keells Holdings appreciated by Rs. 2 to Rs. 194.

Separately Horana Plantations, Hayleys Fabric, Kelani Valley Plantations, Talawakelle Tea Estates, Haycarb and Dipped Products announced their dividends of 40 cents, 25 cents, Rs. 2.50, Rs. 4, one Rupee and 25 cents respectively.