CSE sustains upward momentum for fourth consecutive week

The Colombo Stock Exchange (CSE) continued its upward trajectory for the fourth consecutive week, supported by improved turnover and investor optimism fuelled by a favourable macroeconomic environment. The trading week was shortened to four sessions due to May Day celebrations.

Despite the reduced number of trading days, the market delivered strong returns alongside higher turnover and elevated volatility compared to the previous week. The All Share Price Index (ASPI) closed at 15,851.74, marking a 109.70-point or 0.70 percent gain. 

Meanwhile, the S&P SL20 Index posted a modest increase of 5.78 points to close at 4,638.29, up 0.12 percent. The ASPI’s return above the 15,800 mark is significant, marking a re-entry into this range after a four-week hiatus. The top contributor to the index was Melstacorp PLC, adding 19.76 basis points.

Cargills (Ceylon) PLC recorded the highest turnover for the week, generating Rs.2.12 billion from a share volume of 4.71 million, primarily driven by Rs. 2.11 billion in crossing trades. The stock contributed 5.12 basis points to the ASPI. Another notable performer was C T Holdings PLC, which posted a turnover of Rs. 2.04 billion from 5.23 million shares traded, contributing 8.43 basis points to the ASPI.

Following these transactions, the Food & Staples Retailing sector emerged as the top contributor for the week, accounting for Rs. 4.16 billion in turnover.

On the macroeconomic front, the Consumer Price Index (CPI) saw a marginal increase, largely attributed to seasonal festive spending. Additionally, the Purchasing Managers’ Index (PMI) for construction reflected a slower rate in March than in February, but showed that the new orders index expanded. 

Looking ahead, market sentiment is expected to remain positive as the earnings season progresses, with several listed companies set to release their full-year financial results. These disclosures are likely to enhance investor confidence and could act as a catalyst for continued market momentum (Almas Equities Research).