CSE surges past 15,000- mark with 467-point rally amid renewed optimism

By Almas Equities Research

The Colombo Stock Exchange (CSE) staged a dramatic rebound on Thursday, with the All-Share Price Index (ASPI) soaring 467.26 points, or 3.19 percent, to close at 15,127.71, decisively breaching the critical 15,000 psychological barrier. The bullish momentum marked a sharp reversal from recent volatility, fueled by renewed investor confidence in Sri Lanka’s efforts to mitigate the impact of recently imposed U.S. tariffs and broader optimism across Asian markets.  

The rally was partly buoyed by gains in major Asian markets, including Japan’s Nikkei 225, which jumped 6.01 percent, and India’s Nifty 50, up 1.60 percent. However, Singapore’s STIL Index bucked the trend, declining 2.01 percent. Locally, the market recovered nearly half of the previous session’s losses within the first 30 minutes of trading, driven by robust buying in banking sector stocks. The S&P SL20 Index mirrored the upward trajectory, climbing 193.65 points, or 4.54 percent, reflecting broad-based investor enthusiasm.  

Investor sentiment was further bolstered by the CSE’s attractive valuations, with the benchmark ASPI now trading at a price-to-earnings (P/E) ratio of 7.78, positioning it as a compelling opportunity for international value investors. Market breadth remained overwhelmingly positive, with 214 companies advancing and only 18 declining. Turnover reached Rs. 2.89 billion, supported by a total share volume of 148.77 million, while off-the-floor transactions contributed Rs. 338 million, signaling institutional interest.  

Commercial Bank PLC (COMB.N) emerged as the top positive contributor to the ASPI, adding 43.49 points, while C T Holdings PLC (CTHR.N) weighed on the index, trimming 14.1 points. Sampath Bank PLC (SAMP.N) dominated turnover, with Rs. 302.73 million worth of shares traded.  

Looking ahead, market participants are closely monitoring U.S. trade negotiations, with hopes that diplomatic progress could ease global economic pressures and sustain the rally. Hopes remain that diplomatic efforts will lead to more favorable terms, easing economic pressure both globally and locally.