ECONOMYNEXT – The Colombo Stock Exchange ended at a new record closing high on Friday led by financials in strong turnover, data on its site showed.
The broader ASPI closed up 1.88 percent, or 291.79 points, at 15,827.39; while the more liquid S&P SL20 Index closed up 3.14 percent, or 146.79 points, at 4,813.38.
“It is the bullish trend and we believe that trend to continue because the uncertainties that were there are being removed one by one,” Dimantha Mathew, Chief Research & Strategy Officer at First Capital Holdings PLC, told EconomyNext.
“Interest rates are on further decline and investors are on the lookout for alternative investment. This is why we see heavy demand coming for equities. There is also expectation on foreigners coming into the market in the near future. So there is a huge boom in the market.”
Bank and financial shares led the market gain and the turnover which was 10.2 billion rupees.
“Banks are very attractive because most of the past uncertainties are now taken off. They also will get upgraded with the country’s rating is upgraded. On average, now there is only a haircut of 7 percent after the debt restructuring and that means there is an expectation of huge write back coming to the market.”
Top positive contributors to the ASPI were Hatton National Bank (up 5.2% to 317.25), NDB (up 11.2% to 106.75), Sampath Bank (up 4% to 117.50), DFCC (up 8.4% to 107.75), and Ceylon Tobacco Company (up 4.6% at 1,386). (Colombo/December 30/2024)
Continue Reading
