In a significant display of investor confidence following the election of President Anura Kumara Dissanayake, the Colombo stock market surged to record its largest daily gain in 2024. The All Share Price Index (ASPI) leapt by 237.31 points (2.14%), and the S&P SL20 followed with a 75-point increase (2.36%). Turnover hit Rs. 2 billion, involving the exchange of 96 million shares.
First Capital attributed the market’s bullish momentum to easing political uncertainties and a resurgence in retail investment confidence. The ASPI rose to 11,334, recording its highest intraday gain for the year. Key stocks contributing to the rise included Commercial Bank, Melstacorp, LOLC, Hatton National Bank (HNB), and Ceylon Cold Stores (CCS), with the latter seeing a notable 10.2% price hike.
Despite muted participation from high-net-worth investors, turnover surged to nearly double the monthly average. The banking sector dominated market activity, contributing 38% to overall turnover, while the capital goods and food & beverage sectors contributed 34%. However, foreign investors remained net sellers, with a net outflow of Rs. 69 million.
NDB Securities reported that indices closed in green, driven by price gains in Commercial Bank, Melstacorp, and LOLC Holdings. High-net-worth and institutional interest was observed in Access Engineering, Sampath Bank, and Hemas Holdings, with retail investors focusing on SMB Leasing, Browns Investments, and Marawila Resorts.
Key price movements included a Rs. 3.10 increase for Commercial Bank, Rs. 3.25 gain for Hatton National Bank, and a Rs. 1.00 rise for Sampath Bank. The capital goods sector also saw notable gains, with John Keells Holdings increasing by 50 cents and Access Engineering up by 40 cents.
This market rally reflects growing optimism in Sri Lanka’s economic outlook under the new leadership, with investors anticipating improved stability and growth opportunities.