Peace deal optimism lifts CSE

By Almas Equities Research

The Colombo Stock Exchange extended its gains on Thursday, supported by improving investor sentiment following reports that the United States and Iran had signed a Memorandum of Understanding (MoU) paving the way for a potential peace agreement. The development boosted confidence across global markets and spilled over into the local bourse, helping both benchmark indices close in positive territory.

Despite the improved sentiment, overall market activity remained relatively moderate as investors largely adopted a wait-and-see approach ahead of the anticipated formal signing of the peace agreement on Friday. Market participants also continued to monitor global developments and domestic economic indicators for further signs of stability that could support a sustained recovery in equities.

The ASPI gained 50.23 points, or 0.22%, to close at 22,436.14, while the S&P SL20 advanced 16.06 points, or 0.26%, to 6,226.78. Turnover stood at LKR 3.12 Bn, with a total of 103.92 Mn shares changing hands during the session, reflecting moderate participation despite the positive undertone.

The Banking sector emerged as the top contributor to market turnover, generating LKR 0.52 Bn with 6.13 Mn shares traded. NDB.N led the sector, accounting for LKR 0.18 Bn in turnover with 1.64 Mn shares changing hands. Crossing transactions amounted to LKR 0.80 Bn, representing 25% of total market turnover, with the largest crossing recorded in MFPE.N at LKR 0.14 Bn involving 7.0 Mn shares.

Market breadth improved notably, with 106 gainers against 92 decliners, indicating a broad-based improvement in sentiment. SPEN.N emerged as the biggest positive contributor to the ASPI, adding 18.72 points, while DIAL.N, MELS.N, GRAN.N and PKME.N also supported the market's advance. On the downside, CFLB.N shaved off 4.93 points from the index, followed by CARS.N, HARI.N, RICH.N and DIPD.N.

Among notable counters, ASCO.N attracted investor interest with a turnover of LKR 0.09 Bn and 1.68 Mn shares traded. However, the counter ended the session 4.42% lower, highlighting the continued presence of selective profit-taking despite the overall positive market sentiment.