The preceding week was a positive one for the Colombo Stock Exchange (CSE), with increased volumes observed as investor sentiments improved in the aftermath of former President Gotabaya Rajapaksa’s resignation.
Trading in the Colombo bourse has been on an upward trend since July 15, 2022, following the resignation of the former President, and increased interest was observed as investors began bargain hunting in the market, where value stocks had fallen to deep discounts due to months of political uncertainty.
On Monday (18), the CSE showed signs of improvement, with strong buying observed across the board as investor sentiments turned north in the face of increasing optimism about the possibility of achieving political stability and the arrival of fuel shipments, which is expected to alleviate the four-week-long fuel shortage.
The benchmark All Share Price Index (ASPI) increased by more than 68.79 points (up 0.92 percent) from the previous day’s close of 7,467.82 points during the market session, as buying was observed across the board.
The ASPI peaked at 7,553.78 points intraday before settling at 7,536.61 points. A similar movement was seen in the blue-chip Standard & Poor’s Sri Lanka 20 (S&P SL20) index, which rose 22.91 points (0.95 percent) during the day, reaching 2,423.08 points by market close from 2,400.17 points the previous day.
When compared to the previous market session, market turnover increased by 27.2 percent to Rs. 1.4 billion, with over 65 million shares traded, and a net foreign inflow of 123.3 million was recorded. Offboard transactions at John Keells Holdings PLC (JKH) contributed Rs. 110 million, or 8% of daily turnover.
On Tuesday, the upward trend continued (19). While trading was initially sluggish due to the uncertainty surrounding the presidential election, the market ended the day strongly with healthy turnover levels.
As a result, the ASPI rose 107.51 points during the day, closing at 7,644.12 points (up 1.43 percent) from the previous day’s close of 7,536.61 points. The S&P SL20 index gained 36.37 points (1.5 percent) during the day, closing at 2,459.45 points, up from 2,423.08 points the previous day.
On Wednesday, market trading remained bullish for the fourth consecutive session (March 20). However, due to the uncertainty surrounding the presidential election results, which were announced immediately after the market closed, some profit taking was observed during the latter part of the day.
As a result, the ASPI ended the day up only 67.96 points (0.89 percent), reaching 7,712.08 points by market close from 7,644.12 points the previous day. Similarly, the S&P SL20 index rose 18.36 points to 2,477.81 points, up from 2,459.45 points the previous day.
When compared to the previous day’s turnover, market turnover increased by 20.0 percent to Rs. 1.3 billion, with over 82.7 million shares traded. Off-board trades between JKH and Melstacorp PLC (MELS) totaled Rs. 359 million, or 27% of the daily turnover.
The CSE recorded a positive trading session for the fifth consecutive session on Thursday (21), the first such instance this quarter. As a result, the ASPI gained 24.29 points during the day, closing at 7,736.37 points (up 0.31 percent) from the previous day’s close of 7,712.08 points.
Similarly, the S&P SL20 index gained 8.87 points (0.36 percent) during the day, closing at 2,486.68 points, up from 2,477.81 points the previous day. With over 71.1 million shares traded each day, the daily market turnover was around Rs. 1.3 billion.