ECONOMYNEXT – The Colombo Stock Exchange closed slightly higher on Monday amidst growing investor confidence, brokers said.
“The session started on a positive note,” Dimantha Mathew, Chief Research and Strategy Officer at First Capital Holdings PLC told EconomyNext.
“A lot of interest is coming in on the banking side, with some construction as well,” he said.
The broader All Share Price Index (ASPI) closed 0.11% up, or 18.40 points stronger at 16,397.79.
The ASPI’s top contributor was Hatton National Bank, which ended 3.75 rupees up at 309.00 rupees; followed by John Keells Holdings, which rose 0.20 rupees to 21.20 rupees; Seylan Bank, which ended 2.80 rupees higher at 73.70 rupees; CT Holdings, which went up 6.75 rupees to 400.00 rupees; and Commercial Bank, which rose 0.75 rupees to close at 143.50 rupees.
The more actively traded S&P SL20 closed 0.35% higher, or 17.02 points up at 4,837.69.
Turnover was healthy, Mathew said, at 2.61 billion rupees in the session.
Retail activity was healthy as well.
“There were a lot of crossings that came about today,” Mathew said of the banking sector.
Examples of this include Pan Asia Bank, Seylan Bank, DFCC Bank, and so on.
This is the fourth consecutive session in which the market has seen gains.
This confidence is attributed to the continued impact of last week’s US-China trade negotiations.
“Investor confidence is gradually improving. It is also supported by the profitability and earnings of companies,” Mathew said.
This trend is expected to continue.
Two potential developments could further boost confidence, he added: the IMF Executive Board’s approval of the Fourth Review of Sri Lanka’s reform program and a conclusion to the US-SL tariff negotiations.
US President Donald Trump said last Friday that the US would unilaterally be delivering new tariff rates to most countries.
Only the US’ major trading partners would be considered for ‘bespoke’ negotiations.
Sri Lanka will likely be among the 100+ countries receiving these new tariffs over the coming weeks.
Further details have yet to be provided by the US. (Colombo/May19/2025)
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