Sri Lanka’s CSE ends June with stellar performance
Daily FT: The Colombo stock market has ended June with a stellar performance, with both indices netting 7% growth whilst the benchmark ASPI crossed the 18,000-points mark.
The ASPI has gained by 0.86% to close at 18,026 points, and the active S&P SL20 by 1.3%. Turnover was Rs. 6.38 billion involving 257.3 million shares.
Turnover was led by LB Finance (Rs. 448 million), Access Engineering (Rs. 398 million), JKH (Rs. 392 million), Central Finance (Rs. 255 million), and Sampath Bank (Rs. 245 million).
June marked the second consecutive gain for the Colombo Stock Exchange (CSE) after a lapse of over six months. The ASPI was up 13% year-to-date and the S&P SL20 by 10%. Market capitalisation was Rs. 6.43 trillion, reflecting a 13% growth.
First Capital said building on the positive investor sentiment from the previous week, the Colombo bourse continued its upward trajectory, although some selling pressure emerged during early trading hours. The ASPI surpassed the 18,000 mark for the first time in history, fuelled by strong participation from both retail and HNW investors. Accordingly, the index closed at 18,026, gaining 154 points. Notable investor interest was observed in the Banking and NBFI sectors. Key contributors to the index’s gains included CFIN, JKH, COMB, SAMP, and BUKI.
The Diversified Financials sector led the way in turnover, accounting for a 25% share, followed by the Capital Goods and Banking sectors, which together contributed around 36%. Foreign investors remained net sellers, with a net outflow of Rs. 135 million.
NDB Securities said high net worth and institutional investor participation was noted in LB Finance, Access Engineering, and Kelani Tyres. Mixed interest was observed in John Keells Holdings, Central Finance Company, and Commercial Credit & Finance, whilst retail interest was noted in Beruwala Resorts, UB Finance Company, and LVL Energy Fund.
The Diversified Financials sector was the top contributor to the market turnover (due to LB Finance and Central Finance Company), whilst the sector index gained 2.62%. The share price of LB Finance increased by Rs. 4.50 to Rs. 129.75. The share price of Central Finance Company recorded a gain of Rs. 18.50 to Rs. 263.75.
The Capital Goods sector was the second highest contributor to the market turnover (due to Access Engineering and John Keells Holdings), whilst the sector index increased by 1.49%. The share price of Access Engineering gained Rs. 1.50 to Rs. 44. The share price of John Keells Holdings moved up by Rs. 0.50 to Rs. 22.60.
OSL take:
Sri Lanka’s economy is on a growth path and all economic indicators also show that the country is poised for further growth and is now an emerging business destination in the South Asian region. Supported by the country’s strategic positioning in the Indian Ocean and the strong trade ties with many foreign countries, Sri Lankan authorities have also taken steps to further improve the ease of doing business environment in the country while introducing many incentive schemes, making the growing business/investment opportunities in Sri Lanka becoming lucrative ventures. The strengthening stock market in the country with local stock prices witnessing an increase is also indicative of the increasing business confidence in Sri Lanka. With Sri Lanka’s economic expansion opening up a host of business/investment opportunities and the overall growth momentum in Sri Lanka, foreign businesses/investors could explore the expanding business/investment opportunities while also looking at the possibilities of further expanding operations through local collaborations.
| Article Code : | VBS/AT/20250707/Z_3 |