CSE wraps up July with strong gains amid renewed buying interest

By Almas Equities Research 

The Colombo Stock Exchange (CSE) concluded the final trading session of July on a positive trajectory, reflecting investor resilience despite early-session volatility. The All Share Price Index (ASPI) rebounded sharply after a muted start, gaining as much as 105 points intraday before settling with a robust gain of 76.33 points (+0.39%) to close at 19,642.48. The S&P SL20 index, which captures the performance of 20 leading companies, also advanced by 10.49 points (+0.18%) to end at 5,762.17.

Market turnover stood at a healthy LKR 5.66 billion, supported by a share volume of 205.87 million shares. Notably, crossings accounted for approximately 20% of total turnover, amounting to LKR 1.10 billion, underscoring renewed institutional participation. The Banking sector dominated trading activity, contributing 27% of the day’s total turnover a sign of investor confidence in financials and consistent institutional interest in defensive counters.

Among the top positive contributors to the ASPI, Hayleys PLC (HAYL.N) recorded a turnover of LKR 65.76 million from 354,895 shares traded. DFCC Bank (DFCC.N), Browns Investments (BIL.N), NDB Bank (NDB.N), and Commercial Credit (COCR.N) also added to the day’s upward momentum. On the other hand, John Keells Holdings (JKH.N) emerged as the most significant negative contributor, posting a turnover of LKR 492.92 million from 20.69 million shares traded. COMB.N, MELS.N, HHL.N, and GLAS.N also weighed negatively on the index.

A notable feature in today’s trading was the sharp price appreciation of ALPHA FIRE SERVICES PLC (AFS.N), which surged by 13.84%, reflecting speculative buying interest. In terms of negotiated deals, Access Engineering (AEL.N) accounted for the highest turnover from crossings at LKR 174.46 million, while Union Bank (UBC.N) recorded the highest crossing volume with 7.5 million shares traded.

On the macroeconomic front, Sri Lanka is still awaiting a reciprocal tariff reduction following the 30% tariff imposed under a prior announcement by U.S. President Donald Trump. While the Sri Lankan government continues to engage in discussions with U.S. counterparts in pursuit of favorable trade terms, no formal update has been received regarding a revision to its current tariff status. In contrast, President Trump recently announced a 25% tariff rate on Indian exports along with an additional penalty and revised South Korea’s tariff rate downward from 25% to 15%. These revised rates are scheduled to take effect from August 2, raising anticipation for a potential adjustment in Sri Lanka’s trade terms in the coming days.

With strong local investor participation and broad-based gains across sectors, the market ended July on a confident note. However, traders will be closely monitoring macro developments, particularly external trade negotiations, which may carry broader implications for corporate earnings and sectoral exposure in the months ahead.