Market holds firm amid strengthening macroeconomic conditions

By Almas Equities Research 

The Colombo Stock Exchange (CSE) continued its positive trajectory for the fourth consecutive trading session, supported by a strong rebound in investor sentiment driven by a positive economic outlook.

Opening on a positive footing, the ASPI maintained momentum throughout the session, ultimately closing at 15,867.34, up 55.87 points (0.35 percent). The S&P SL20 Index also posted gains, climbing 17.87 points (0.38 percent) to settle at 4,671.26.

Total market turnover amounted to Rs  2.06 billion, with 109.49 million shares traded. While overall turnover was moderate and lesser than yesterday, trading activity was focused and strategic. Market breadth was notably positive, with 124 gainers outweighing 70 losers, reflecting broad investor participation contributing to the All-Share Price index. 

John Keells Holdings (JKH.N) emerged as the top contributor to the ASPI, adding 11.61 points, while Melstacorp PLC (MELS.N) was the largest drag, subtracting 3.71 points. The Food, Beverage and Tobacco sector led in terms of turnover contribution.

Crossing transactions contributed significantly to overall turnover, totaling Rs  178.48 million, or roughly 10% of daily turnover. The largest crossings were recorded in CIC Holdings PLC (CIC.N), accounting for a total of Rs 46.88 million with 403,737 shares traded.

Hemas Holdings PLC (HHL.N) has temporarily suspended trading in light of the upcoming share subdivision. The suspension will remain in effect until 6th May 2025, with trading scheduled to resume on 7th May 2025. As the earnings season kicks off, eight companies have released their financial results so far, with notable improvements in performance across the board.

The market witnessed sustained investor interest from the beginning of the week, driven by a broadly positive macroeconomic outlook. This encouraging environment continued to attract participants into the market from the start of the week, reflecting growing confidence in the near-term economic trajectory.