Market extends rally on IPO boost

By Almas Equities Research

The Colombo Stock Exchange (CSE) extended its upward momentum on Thursday, with both benchmark indices closing firmly in positive territory, supported by renewed investor confidence, strong sector participation, and an exceptional IPO debut.

The ASPI gained 233.28 points (+1.00%) to close at 23,527.13, while the S&P SL20 advanced 94.18 points (+1.48%) to settle at 6,458.03. The market picked up from Tuesday’s levels following the prior day’s unexpected trading disruption, with sentiment improving steadily throughout the session.

Turnover surged to LKR 12.33 billion, underpinned by heightened activity in the Real Estate sector, which accounted for LKR 4.58 billion with 33.18 million shares traded. SHAW.N dominated sector activity, contributing LKR 3.95 billion in turnover on 18.29 million shares. Crossings amounted to LKR 4.9 billion, representing 40% of total market turnover, with SHAW.N recording the largest single crossing at LKR 3.9 billion.

A key highlight of the session was the debut of Wealth Trust Securities Limited (WLTH.N), which delivered one of the strongest IPO performances in recent years. The stock surged 167% on debut, generating a turnover of LKR 1.16 billion and significantly boosting overall market sentiment.

Banking sector counters also attracted renewed interest, driven by expectations surrounding financial-year closures, potential earnings growth, and dividend announcements. HNB.N emerged as the top positive contributor to the indices, followed by SAMP.N, COMB.N, DFCC.N, and CFIN.N.

On the downside, CARS.N led the drag on the indices, while RICH.N, GUAR.N, AEL.N, and ACL.N also weighed modestly on market performance.

Market breadth remained positive, with 125 gainers outnumbering 99 decliners, reflecting sustained investor participation across sectors.

Overall, the session highlighted improving risk appetite and selective buying interest, supported by strong liquidity conditions and renewed confidence following the successful IPO debut.