The Colombo stock market reached new heights yesterday as investor confidence soared under the newly elected President Anura Kumara Dissanayake. The benchmark All Share Price Index (ASPI) skyrocketed by 326 points, marking its highest single-day gain in 14 months, a 2.87% increase to a two-month high. Over the past seven sessions, the ASPI has gained over 1,000 points. The S&P SL20 also climbed 4%, adding 132 points to the index.
Total turnover stood at Rs. 4 billion with 151 million shares changing hands. Capital Trust highlighted that this surge reflects renewed investor optimism, signaling a potential turnaround in market sentiment. Asia Securities further noted that the ASPI rally was led primarily by banks and heavyweight counters, continuing the momentum from the previous session.
Notable price increases during the session included Pan Asia Banking Corporation (+8.4%), Hatton National Bank (+7.2%), Commercial Bank (+6.0%), and Nations Trust Bank (+3.4%). Additionally, Lanka IOC (+8.9%), LOLC Finance (+8.8%), Browns Investments (+7.3%), and Vallibel One (+5.1%) closed the day on a high, contributing to a broad-based rally. Major index movers were Hatton National Bank (+40 points) and Commercial Bank (+35 points), with 184 stocks gaining and only 31 declining.
The day’s turnover was led by off-board transactions in Commercial Bank (Rs. 193 million), Hatton National Bank (Rs. 171 million), Sampath Bank (Rs. 145 million), and Carson Cumberbatch (Rs. 94 million). Banks, Capital Goods, Food, Beverage & Tobacco, and Diversified Financials sectors accounted for 83% of total turnover.
Foreign investors recorded a net inflow of Rs. 82.1 million. Sampath Bank saw the highest net foreign buying at Rs. 96.9 million, while CIC Holdings had the highest net foreign selling at Rs. 31.5 million.
First Capital noted that the bullish trend was driven by improved investor sentiment following the Presidential election, with gains in blue-chip stocks and across nearly all sectors. High net worth and institutional investor participation was notably high in the banking sector, particularly in Commercial Bank, Hatton National Bank, and Sampath Bank.
The Banking sector led the market turnover with the sector index rising 5%. Hatton National Bank’s share price increased by Rs. 12.75 to close at Rs. 190.25, while Commercial Bank rose by Rs. 5.60 to Rs. 99.60, Sampath Bank climbed Rs. 2.40 to Rs. 77.40, and Pan Asia Banking Corporation appreciated by Rs. 1.70 to close at Rs. 21.90.
The Capital Goods sector was the second-largest contributor to market turnover, with John Keells Holdings leading the way. Its share price rose by Rs. 2.25 to close at Rs. 171.25.