CSE closes week on positive note with modest gains in main indices

The Colombo Stock Exchange (CSE) concluded last week on a positive note following the end of the long New Year holidays. Despite a subdued start and generally low activity levels, the market showed signs of recovery toward the end of the week. Turnover and volumes remained weak during the first three sessions, with the market trading in the red, but sentiment improved in the final two sessions, which closed in positive territory with increased activity.

The All Share Price Index (ASPI) closed the week at 15,742.04, gaining 125.47 points, or 0.80 percent meanwhile, the S&P SL20 Index posted a modest gain of 8.27 points to close at 4,632.51, reflecting a 0.18 percent increase. The ASPI surpassing the 15,700 level is notable, marking a return to this range after three weeks. The top contributor to the index was Ceylinco Insurance PLC (CINS.N), adding 21.19 basis points.

John Keells Holdings PLC emerged as the highest turnover generator for the week, contributing Rs. 617.68 million through a share volume of 31.04 million, including Rs. 249 million from crossing trades. Another standout performer was Agarapathana Plantations PLC, which surged 25.37 percent in price, driven by robust trading activity. The company recorded a turnover of Rs.199 million from 12.73 million shares, following the completion of Lankem Developments PLC’s rights issue. The Capital Goods and Food, Beverage & Tobacco sectors were the leading contributors to market turnover, with continued investor interest in counters within these segments. A key development during the week was the announcement of Capital Alliance Holdings’ Initial Public Offering (IPO), scheduled for May. The IPO aims to raise Rs. 1.57 billion through the issuance of 157 million shares at Rs. 10 per share.

On the macroeconomic front, Sri Lanka successfully completed the fourth review of its IMF programme, bolstering investor confidence and strengthening the country’s economic outlook. (Almas Equities Research)

Additionally, the announcement of new bilateral trade agreements between Sri Lanka and the United States further added to the week’s positive sentiment.

Looking ahead, the market is expected to remain upbeat as the results season unfolds, with many listed companies set to release their 12-month financials. .