Ishara’s sell-off of HNB X shares boosts CSE turnover to Rs. 17 b

• Browns Investments figures in 39.3 m trade of HNB non-voting shares for Rs. 10.8 b

Ishara Nanayakkara

The sale of Ishara Nanayakkara’s non-voting shares of Hatton National Bank (HNB) yesterday boosted turnover at the Colombo stock market to over Rs. 17 billion, though indices were down due to profit-taking.

HNB saw 39.3 million of its Non-Voting (X) shares traded yesterday for Rs. 10.78 billion, accounting for 63% of turnover. This included 207 crossings of 38.5 million shares at Rs. 280 each. Buyers of HNB.X were widespread.

Ishara via Browns Investments (BIL) held 53.14 million non-voting shares of HNB, accounting for 45.87% of its total as at 31 March 2025. It is believed that with yesterday’s sale, Ishara has no direct holdings in HNB.

On 27 May, Ishara first sold the 9.9% voting stake of HNB held by BIL for Rs. 14 billion to business tycoon Nandana Lokuwithana. The HNB voting share price closed that day at Rs. 319.50, whereas yesterday it was Rs. 359.50.

Separately, HNB Voting shares also traded heavily, generating a turnover of Rs. 1.2 billion. Other contributors to the turnover were JKH (Rs. 537.4 million), Access Engineering (Rs. 353.5 million), and Sampath Bank (Rs. 326.5 million).

According to Almas Equities Research, yesterday’s market turnover was the seventh highest in the history of the Colombo Stock Exchange (CSE). It also marked the third time in 2025 that the CSE has entered the Top 20 All-Time Turnovers, highlighting renewed investor confidence and rising market momentum. Ishara’s sale of voting shares of HNB on 27 May saw market turnover rise to the fourth highest of Rs. 18.7 billion.

First Capital said the Colombo bourse failed to sustain its bullish momentum for the fifth consecutive day, as selling pressure from profit-taking weighed on the market. Key counters such as JKH, HAYL, CFIN, MELS, and RCL pulled the index lower. Despite the selling pressure, the ASPI saw only a modest decline of 61 points, closing at 18,885. A key highlight of the day was the sharp surge in turnover, which hit a high in over one month, and a 184% increase compared to the monthly average.

Notable high net worth investor participation was observed. The Banking sector dominated activity, accounting for 76% of total turnover, followed by the Capital Goods and Food, Beverage and Tobacco sectors, which jointly contributed around 10%. Foreign investors turned net buyers with a net inflow of Rs. 63.6 million.

NDB Securities said crossings were witnessed in Hatton National Bank non-voting, Hatton National Bank, and John Keells Holdings, accounting for 69.9% of turnover. Mixed interest was observed in Sampath Bank, Browns Investments, and Access Engineering, whilst retail interest was noted in Citrus Leisure, HVA Foods, and Eastern Merchants.

The Banking sector was the top contributor to the market turnover (due to Hatton National Bank non-voting, Hatton National Bank, and Sampath Bank), whilst the sector index lost 0.13%. The share price of Hatton National Bank non-voting decreased by Rs. 7 to close at Rs. 286.50. The share price of Hatton National Bank lost Rs. 0.50 to close at Rs. 359.50. The share price of Sampath Bank appreciated by Rs. 1.25 to Rs. 139.50.

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 decreased by 1.08%.

The share price of John Keells Holdings moved down by Rs. 0.40 to Rs. 25.60. The share price of Access Engineering recorded a loss of Rs. 0.90 to Rs. 58.