Colombo stock market sustains bullish sentiment with sharp gains in indices, turnover

The Colombo stock market yesterday turned bullish with the benchmark index crossing the 17,000-points level amidst high turnover.

The ASPI shot up by 234 points or 1.4% to close at 17,214 points. The active S&P SL20 gained by nearly 2%. Turnover was Rs. 7.37 billion involving 272 million shares.

Turnover was led by HNB (Rs. 330 million), Sampath Bank (Rs. 327.6 million), Digital Mobility Solutions (Rs. 319 million), Commercial Credit (Rs. 255 million) and Central Finance (Rs. 242.6 million).

Whilst locals remained bullish, foreigners capitalised resulting in a net outflow of over Rs. 200 million.

First Capital said the market opened on a strong note and maintained its momentum throughout the session, ending solidly in positive territory. For the second consecutive day, gains were primarily driven by leading Banking sector stocks COMB, SAMP, DFCC, and HNB, with additional support from CFIN. Investor sentiment remained broadly positive, driven by heightened retail participation and increased interest from HNW investors in HNB and SEYB.

Market turnover was 72% above the monthly average. The Banking sector led turnover contributions at 26%, followed by the Capital Goods and Diversified Financials sectors, which together accounted for 34%. Despite the positive domestic sentiment, foreign investors remained cautious, registering a net outflow of Rs. 273.6 million.

Asia Securities said continuing its upward momentum, due to notable price gains in banking stocks, including CBNK (+5.3%), DFCC (+4.3%), COMBN (+3.4%), NDB (+3.1%), and SAMP (+2.3%). Moreover, investors showed increased interest in construction sector stocks like JAT (+6.7%), ACL (+3.5%), PARQ (+3.4%), AEL (+1.9%), and TKYON (+1.4%), along with NBFI sector stocks such as LCBF (+11.8%), COCR (+6.4%), and CFIN (+4.7%). SINS (+10.8%), LIOC (+5.1%), and PKME (+1.9%) also closed in green, leading to a broad-based rally during the session. COMBN (+28 points), SAMP (+18 points), and DFCC (+16 points) came in as the largest contributors to the ASPI for the day. The market breadth was positive with 154 price gainers and 82 decliners.

Net foreign buying topped in TAP.N at Rs. 74.1 million and selling topped in PKME.N at Rs.

262.9 million.

NDB Securities said high net worth and institutional investor participation was noted in Hatton National Bank, Seylan Bank and Digital Mobility Solutions Lanka. Mixed interest was observed in Sampath Bank, Access Engineering and Commercial Credit & Finance whilst retail interest was noted in Singhe Hospitals, Mackwoods Energy and Waskaduwa Beach Resort.

The Banking sector was the top contributor to the market turnover (due to Hatton National Bank and Sampath Bank) whilst the sector index gained 2.53%. The share price of Hatton National Bank increased by Rs. 5.25 to Rs. 320. The share price of Sampath Bank gained Rs. 2.75 to Rs. 120.50.

The Capital Goods sector was the second highest contributor to the market turnover whilst the sector index increased by 0.88%.

Digital Mobility Solutions Lanka, Commercial Credit & Finance and Central Finance Company were also included amongst the top turnover contributors. The share price of Digital Mobility Solutions Lanka moved up by Rs. 1.50 to Rs. 78.50. The share price of Commercial Credit & Finance recorded a gain of Rs. 5 to Rs. 82.60. The share price of Central Finance Company appreciated by Rs. 10 to Rs.

222.25.