The Colombo Stock Exchange (CSE) recorded a significant milestone on Monday, May 27, with total market turnover reaching an impressive Rs. 18.7 billion. This marks one of the highest single-day trading volumes in recent years, reflecting renewed investor enthusiasm and heightened activity in the local equity market.
The surge was largely attributed to a landmark transaction involving Hatton National Bank PLC (HNB). Browns Investments PLC, which previously held a 9.99% stake in HNB, sold its entire holding to Ceylon Steel Corporation Ltd. in a negotiated deal. The move not only injected liquidity into the market but also signaled Ceylon Steel’s strategic expansion into the banking and financial services sector, a notable diversification for the industrial heavyweight.
HNB shares responded positively to the development, closing at Rs. 319.50, up Rs. 17.25 or 5.71% from the previous day. The deal alone accounted for the bulk of the day’s turnover and positioned HNB as the top contributor to market performance.
Broader market indices reflected the upbeat momentum. The All Share Price Index (ASPI) advanced by 161.39 points, closing at 16,667.63, while the S&P SL20 Index, which tracks the top 20 most liquid stocks, rose by 77.17 points to end the day at 4,916.11.
This level of turnover was last seen in June 2021, underscoring the significance of the transaction and the renewed investor confidence in Sri Lanka’s capital markets.