CSE up following CBSL policy rate cut and improved investor sentiment

By Almas Equities Research 

The Colombo Stock Exchange (CSE) closed on a positive note today, reflecting an overall optimistic market outlook. Investor participation remained active, with a noticeable increase in trading activity, primarily driven by the Central Bank of Sri Lanka’s (CBSL) announcement of a policy rate cut. The CBSL reduced its single policy rate by 25 basis points to 7.75 percent, a move that contributed to renewed investor confidence and positively influenced market sentiment.

The All Share Price Index (ASPI) continued its positive momentum throughout the session, ultimately inclining 117.46  points (0.72 percent) to close at 16,473.37. Similarly, the S&P SL20 index inclined by 26.15 points (0.54 percent) to end the session at 4,842.51.

Total market turnover amounted to Rs. 4.54 billion, with 277.350 million shares traded. Market breadth reflected a positive  sentiment, with 126 gainers and 82 losers contributing to the overall movement of the ASPI.

Cargills (Ceylon)  PLC (CARG.N) emerged as the top contributor to the ASPI, adding 27.09 points, while Sampath Bank PLC (SAMP.N) was the largest detractor, subtracting 6.72 points. The Capital Goods sector led sectoral turnover with Rs. 1.19 billion, accounting for nearly 26% of total market turnover.

Crossing transactions also played a significant role, contributing approximately Rs.1.03 billion roughly 23 percent of the day’s turnover. The largest crossings were recorded in shares of John Keells Holdings PLC (JKH.N), totaling Rs. 272.69 million with 12.69 million shares traded.