Colombo stock market delivers impressive returns in July, boosting YTD figure to 23%

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The Colombo stock market yesterday ended July with a record performance, reinforcing the return of strong investor sentiment.

During the month, the benchmark ASPI gained by 9%, almost equal to the previous best of 9.1% in September last year. The ASPI year-to-date (YTD) has given an impressive 23%. The active S&P SL20 rose by 7.7% in July, increasing the YTD return to 18.5%.

The Colombo stock market has enjoyed three consecutive months of positive return thus far. Average daily turnover in July was Rs. 7.16 billion, higher in comparison to Rs. 4.91 billion in June.

Yesterday, the ASPI gained by 0.39% and the S&P SL20 by 0.18%. Turnover was Rs. 5.6 billion involving 205.8 million shares.

First Capital said the Colombo Stock Exchange (CSE) witnessed increased volatility as investors eagerly await the verdict on US reciprocal tariffs, set to be announced today (1). The index experienced high volatility in the early hours, briefly dipping into negative territory as well, after which a gradual rebound was staged, lifting the index higher by the close.

Key positive contributors for the day were HAYL, DFCC, BIL, NDB, and COCR. Yesterday’s session was supported primarily by HNW investors, followed by reasonable involvement from the retail segment as well.

Positive sentiment prevailed towards mid cap banks such as UBC, PABC, NDB, and DFCC, as quarterly results begin to roll in. Investors also diverted notable focus towards selective Plantation sector counters and Materials sector companies such as ACL, in the wake of reduced copper prices.

The Banking sector dominated turnover, contributing 27%, followed by the Capital Goods sector at 24% and the Food, Beverage and Tobacco sector at 16%. Foreign investors remained net sellers, with a net outflow of Rs. 134 million.

NDB Securities said high net worth and institutional investor participation was noted in Access Engineering, John Keells Holdings, and Melstacorp. Mixed interest was observed in DFCC Bank, Browns Investments, and National Development Bank, whilst retail interest was noted in Industrial Asphalts, SMB Leasing, and Co-Operative Insurance Company.

The Banking sector was the top contributor to the market turnover (due to DFCC Bank, National Development Bank, and Union Bank), whilst the sector index gained 0.20%. The share price of DFCC Bank moved up by Rs. 6 to Rs. 146.25. The share price of National Development Bank recorded a gain of Rs. 1.50 to Rs. 137. The share price of Union Bank appreciated by Rs. 1.40 to Rs. 12.80.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings and Access Engineering), whilst the sector index edged up by 0.03%. The share price of John Keells Holdings decreased by Rs. 0.20 to Rs. 23.90. The share price of Access Engineering closed flat at Rs. 60.20.

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