Middle East ceasefire boosts Colombo bourse

Wednesday, 25 June 2025 00:38 - - {{hitsCtrl.values.hits}}

The Colombo stock market yesterday staged a strong rebound following the announcement of a ceasefire between Israel and Iran.

The benchmark ASPI gained by 2.5% and the active S&P SL20 by 2.8%. Turnover was Rs. 5.2 billion involving 235 million shares. Turnover was boosted by JKH (Rs. 345 million) COMBN (Rs. 258 million) PABC (Rs. 238 million) and CFIN (Rs. 209 million).

The value of the market rose by Rs. 157 billion after having dropped by Rs. 117 billion on Monday.

First Capital said the market witnessed a notable surge in optimism, fuelled by the ceasefire agreement between Iran and Israel. The market responded positively to the news, opening on a bullish note and maintaining its upward momentum throughout the session, fully recovering the previous day’s losses. The ASPI closed at 17,191, marking a gain of 426 points, largely supported by strong retail participation.

Broad-based price gains were observed across sectors, with heightened investor interest in Banking sector stocks and conglomerates. COMB, JKH, MELS, HAYL and LOLC emerged as the top positive contributors to the index. Turnover demonstrated over a 100.0% increase from Monday but slightly lower than the monthly average.

The Banking sector was the top contributor to today’s turnover, accounting for a share of 22%. This was followed by the Capital Goods and the Diversified Financials sector which produced a joint contribution of about 37%.

Asia Securities said the rebound in indices was supported by price gains in heavyweight counters such as DIPD (+8.0%), PARQ (+6.3%), LOLC (+4.9%), and LFIN (+4.2). COMBN (+29 points), JKH (+23 points), MELS (+22 points), and HAYL (+21 points) ended as the major drivers on the ASPI during the session. The market breadth was positive with 225 price gainers and 21 decliners.

Foreigners recorded a net outflow of Rs. 41.3 million. Net foreign buying topped in DIAL at Rs. 53.3 million and selling topped in EAST at Rs. 52.7 million.

NDB Securities said high net worth and institutional investor participation was noted in Commercial Bank, LB Finance and Access Engineering. Mixed interest was observed in John Keells Holdings, Pan Asia Banking Corporation and Central Finance Company whilst retail interest was noted in Nation Lanka Finance, Lanka Credit and Business Finance and LOLC Finance.

The Banking sector was the top contributor to the market turnover (due to Commercial Bank and Pan Asia Banking Corporation) whilst the sector index gained 2.58%. The share price of Commercial Bank gained Rs. 5.25 to Rs. 153.75. The share price of Pan Asia Banking Corporation moved up by Rs. 1.60 to Rs. 43.10.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings) whilst the sector index increased by 3.08%. The share price of John Keells Holdings increased by 60 cents to Rs. 21.70.

Central Finance Company and HNB Finance were also included amongst the top turnover contributors. The share price of Central Finance Company recorded a gain of Rs. 9.25 to Rs. 238. The share price of HNB Finance appreciated by 60 cents to Rs. 5.70.

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