Stock Market

Colombo Stock Market Closes Higher as JKH Drives Net Foreign Buying

The Colombo Stock Exchange (CSE) saw a modest positive close yesterday, supported by a late-day rally in an otherwise volatile session. The benchmark All Share Price Index (ASPI) increased by 12 points, while the more active S&P SL20 rose by 7 points. Total turnover reached Rs. 1.6 billion, involving the trading of 61 million shares.

Foreign investors continued to be net buyers, with a total inflow of Rs. 267 million. John Keells Holdings (JKH) was a key focus of this activity, accounting for Rs. 132.7 million of the net foreign buying.

According to First Capital, the market experienced a volatile day as investors engaged in profit-taking amidst moderate buying interest. The market started on a bearish note, reaching an intraday low of 12,035 due to profit booking. However, the ASPI gradually recovered after midday, closing at 12,164, gaining 12 points. Top contributors to the index’s gains included Ceylinco Insurance (CINS), Hayleys (HAYL), Commercial Bank (COMB), Teejay Lanka (MGT), and Sampath Bank (SAMP).

Despite moderate participation from both retail and high-net-worth (HNW) investors, overall turnover was 21.4% below the monthly average. The Capital Goods sector contributed 37% of the total turnover, followed by the Banking and Food, Beverage & Tobacco sectors, which jointly accounted for 35%.

NDB Securities reported that ASPI closed in the red for key counters such as Sampath Bank, Hayleys, and DFCC Bank. Institutional and high-net-worth investors showed interest in stocks like Citizens Development Business Finance (CDB), John Keells Holdings, and Hatton National Bank.

Mixed interest was observed in shares of Sampath Bank, Commercial Bank, and Dialog Axiata, while retail interest was strong in SMB Leasing, Waskaduwa Beach Resort, and Softlogic Capital. The share price of John Keells Holdings increased by Rs. 4.50, closing at Rs. 198.25, contributing to the overall market gains.

The diversified Financials sector, led by CDB, was the second-highest contributor to the market turnover, though its sector index declined by 0.79%. CDB’s share price remained unchanged at Rs. 202.75. Meanwhile, Sampath Bank’s share price fell by 80 cents to Rs. 81.40, Commercial Bank’s share price dropped by 50 cents to Rs. 106.50, and Dialog Axiata’s share price rose by 50 cents to Rs. 10.