CSE ends mixed as ASPI gains on continued rate cut optimism

By Almas Equities Research 

The Colombo Stock Exchange (CSE) closed on a mixed note today, reflecting an overall optimistic market outlook, as investor sentiment remained positive following the interest rate cut announced yesterday. The momentum continued into today's session, with market participants showing renewed confidence in response to the Central Bank's supportive monetary policy stance.

The All Share Price Index (ASPI) continued its positive momentum throughout the session, ultimately inclining 21.09  points (0.13 percent) to close at 16,494.46. Similarly, the S&P SL20 index declined by 0.43 points (0.01 percent) to end the session at 4,842.08.

Total market turnover amounted to Rsm 3.743 billion, with 182.459 million shares traded. Market breadth reflected a positive  sentiment, with 112 gainers and 94 losers contributing to the overall movement of the ASPI.

Hemas Holdings  PLC (HHL.N) emerged as the top contributor to the ASPI, adding 7.84 points, while LOLC Holdings (LOLC.N) was the largest detractor, subtracting 5.11 points. The Food, Beverage and Tobacco led sectoral turnover with Rs. 1.12 billion, accounting for nearly 30 percent of total market turnover.

Crossing transactions also played a significant role, contributing approximately Rs.0.763 billion roughly 20 percent of the day’s turnover. The largest crossings were recorded in shares of Sunshine  Holdings PLC (SUN.N), totaling LKR 261.00 million with 11 million shares traded.

On the macroeconomic front, Central Bank Governor Dr. Nandalal Weerasinghe stated that Sri Lanka is on track to record a current account surplus for the third consecutive year, supported by stable external sector conditions and prudent monetary policy. Following a 25 basis point cut in the policy rate to 7.75 percent, the Governor highlighted improved resilience in managing reserves and exchange rate stability. Despite past financial account deficits due to external debt repayments and reduced foreign financing, the central bank's market-driven approach has enabled continued external payments and reserve accumulation. The surplus for 2025 is expected to be around 0.9 percent of GDP.