Positive momentum returns despite low turnover

By Almas Equities Research 

The Colombo Stock Exchange (CSE) showed positive momentum today, recovering from a decline seen yesterday. This upward movement reflects improved investor sentiment and renewed buying interest, contributing to a more optimistic market outlook.

Opening on a positive note, the ASPI continued its upward, closing at 15,925.92, an incline of 84.32 points (0.53 percent). The S&P SL20 Index also posted a increase, upward by 21.01 points (0.45 percent) to settle at 4,655.15.

Total market turnover amounted to Rs.1.67 billion, with 127.12 million shares traded. Market breadth was notably positive, with 121 gainers and 71 losers contributed to the ASPI. 

Ceylinco Holdings PLC (CINS.N) emerged as the top contributor to the ASPI, adding 25.25 points, while CT Holdings PLC (CTHR.N) was the largest drag, subtracting 4.82 points. The Food, Beverage and Tobacco  sector led in terms of turnover contribution.

Crossing transactions contributed significantly to overall turnover, totaling Rs.290 Million, or roughly 17 percent of daily turnover. The largest crossings were recorded from Union Bank of Colombo PLC (UBC.N), with a total of Rs.105 million from 10 million shares traded. 

On the macroeconomic front, The World Bank Group yesterday announced a major initiative to support job creation and unlock private sector growth in Sri Lanka, backed by more than $ 1 billion in financing over three years. The funding is allocated to renewable energy, agriculture, tourism, and regional development. Key allocations include $185 million for solar and wind projects, $100 million for agriculture modernization, $200 million for tourism, and $200 million for infrastructure in underserved regions. These initiatives aim to attract private investment and create jobs across the country.