Market closes week on strong note with fifth consecutive gain

By Almas Equities Research

The Colombo Stock Exchange (CSE) extended its rally on Friday, recording its fifth consecutive session of gains as improving investor sentiment and encouraging macroeconomic signals continued to support market momentum.

The ASPI advanced 127.17 points (+0.54%) to close at 23,654.30, while the S&P SL20 gained 44.99 points (+0.70%) to end the session at 6,503.02. The positive close capped off a strong week for equities, reflecting growing confidence among investors amid signs of economic stabilisation.

Investor sentiment was bolstered by the Central Bank of Sri Lanka’s (CBSL) recent outlook signals for FY2026, which pointed towards improving economic conditions. Additionally, the gradual recovery from recent climatic disruptions further supported confidence, encouraging investors to seek new opportunities in the equity market.

Market turnover stood at LKR 8.54 billion, driven largely by activity in the Diversified Financials sector, which accounted for LKR 2.11 billion with 62.71 million shares traded. LOLC.N dominated sector turnover, contributing LKR 1.52 billion on 2.65 million shares. Crossings amounted to LKR 2.43 billion, representing 28% of total turnover, with the largest crossing recorded in LOLC.N at LKR 1.18 billion.

Market participation remained active, with total share volume reaching 269.33 million shares. Market breadth was broadly neutral, as 118 gainers marginally outnumbered 116 decliners, indicating selective buying amid ongoing sector rotation.

JKH.N emerged as the top positive contributor to the indices, followed by COMB.N, VONE.N, CARS.N, and NTB.N. On the downside, MELS.N led the drag on the market, while CTHR.N, CFIN.N, HHL.N, and COOP.N also weighed on index performance.

Among notable trades, COCO.N recorded significant activity, generating LKR 107 million in turnover on 1.75 million shares traded, alongside a strong price gain of 15.66%.

Overall, the market’s sustained upward trend reflects improving confidence in Sri Lanka’s equity market, supported by strengthening macroeconomic indicators, robust liquidity, and selective investor participation.