Sri Lanka stocks traded lower by midday on Thursday as the benchmark index slipped into negative territory, while HNB Finance listed more than 461 million new shares following the completion of its recent rights issue.
Sri Lanka stocks ease while HNB Finance completes listing of rights issue shares
The Colombo Stock Exchange recorded mixed market performance during Thursday’s trading session, with the benchmark All Share Price Index (ASPI) declining 107.58 points, or 0.49 percent, to 21,720.92. In contrast, the more liquid S&P SL20 Index gained 23.19 points, or 0.38 percent, to reach 6,076.33, reflecting strength in selected blue-chip counters.
Among the positive contributors to the ASPI, Dialog Axiata rose 0.91 percent to Rs. 44.40, Seylan Bank gained 1.00 percent to Rs. 101.00, while Malwatte Valley Plantations advanced 4.36 percent to Rs. 57.40, providing some support to the broader market.
However, losses in several heavyweight stocks outweighed the gains. Melstacorp declined 0.80 percent to Rs. 186.25, while Greg recorded one of the session’s sharpest losses, falling 6.57 percent to Rs. 37.00. Richard Pieris and Company slipped 0.32 percent to Rs. 30.90, and Hatton National Bank eased 0.25 percent to Rs. 395.00, making them among the key negative contributors to the benchmark index.
Market activity remained moderate, with total turnover reaching Rs. 503.2 million by midday. The Food, Beverage & Tobacco sector emerged as the largest contributor to turnover, accounting for Rs. 137.6 million, highlighting continued investor interest in defensive and consumer-focused companies.
A notable corporate development during the trading session was the listing of new shares by HNB Finance following its recently completed capital raising exercise. Under the HNB Finance rights issue, the company listed 381,667,019 new ordinary voting shares together with 80,072,222 new non-voting shares, increasing its issued share capital.
The listing marks the completion of the company’s rights issue process and is expected to enhance its capital base, supporting future lending activities and business expansion plans. Rights issues allow existing shareholders to purchase additional shares, enabling listed companies to strengthen their balance sheets while providing investors an opportunity to maintain their ownership stakes.
Overall, Sri Lanka stocks remained under pressure despite gains in selected banking and telecommunications counters. Investors continue to monitor corporate earnings, macroeconomic developments and trading volumes for further direction, while the latest HNB Finance rights issue listing adds another significant corporate action to the Colombo Stock Exchange during the current trading period.