The Colombo stock market gained over 1% yesterday, driven by positive investor sentiment following the Budget presented by President and Finance Minister Anura Kumara Dissanayake.
The benchmark ASPI rose by 1.3%, while the S&P SL20 increased by 1.4%. Turnover was recorded at Rs. 5.4 billion, with 133 million shares traded.
First Capital noted that the market saw increased investor confidence post-Budget, with heightened focus on the Banking sector and Blue-chip stocks. Key contributors to the positive index movement were CINS, MELS, NDB, SAMP, and HAYL. Increased activity was also observed in CFVF and DIAL following dividend announcements. The Insurance sector led turnover at 19%, followed by Banking and Diversified Financials, which jointly contributed 37% of overall turnover.
There was a net foreign inflow of Rs. 777.4 million, with foreign buying topping in CINS.N at Rs. 908.5 million, while selling was highest in TJL at Rs. 116.1 million.
Asia Securities highlighted that the indices opened the week on a positive note, with notable gains in banking stocks such as PABC (+5.5%), NTBN (+4.1%), SAMP (+1.9%), and COMBN (+1.2%). Other major gainers included DIPD (+6.0%), HAYL (+3.7%), and TJL (+3.6%), contributing to a broad-based rally.
NDB Securities reported high net worth and institutional investor participation in Ceylinco Holdings, LOLC Holdings, and Melstacorp. Mixed interest was observed in First Capital Holdings, Hatton National Bank, and Dialog Axiata, while retail activity was noted in SMB Leasing nonvoting, LOLC Finance, and Hela Apparel Holdings.
The Insurance sector was the top contributor to market turnover, led by Ceylinco Holdings, which saw its share price increase by Rs. 235.25 to Rs. 3,935.50. The Diversified Financials sector was the second-highest contributor, with First Capital Holdings and LOLC Holdings recording gains. Hatton National Bank and Dialog Axiata also saw price increases, contributing to overall market momentum.