‘Strong interest on the banking sector’

The Colombo Stock Exchange indices rose, bucking the falling trend in early January, data on its site showed.

The All Share Price Index surpassed the 16,000 mark in early morning trade and continued its upward trend.

Following the finalization of Sri Lanka’s debt restructuring deal in mid-December, analysts said indices are at an all-time high.

The broader ASPI closed up 1.42 percent or 226.35 points at 16,152.35, while the more liquid S&P SL20 Index closed up 2.02 percent or 96.90 points at 4,905.19.

Turnover was 4.44 billion rupees, while the share volume rose 22.4 percent to 172,687,017.

“Heavy interest on large capital bluechip stock can be seen,” Dimantha Mathew, Chief Research and Strategy Officer at First Capital Holdings PLC, told EconomyNext.

“Investors expect large foreign investments to flow into bluechip companies,” he said.

Large capital companies have driven the indices up, Mathew said.

John Keels rose 0.42 percent to 24.10, Hayleys was up 1.56 percent to 130.00, and LOLC climbed 1.10 percent to 691.75.

However, the net foreign outflow was 312 million rupees for the day.

“There’s a strong interest on the banking sector and consumer sector.”

Pan Asia Bank closed up 2.2 percent to 36.90, NTB rose 4.1 percent to 182.25, NDB ended 5.5 percent stronger at 114.50, and Dilmah was up 4.6 percent to 1,115.00.

“Retail activities are quite strong.”

Analysts say many new accounts are surging into the risky assets market, with falling interest rates and doubled withholding tax making the market attractive.

There was a net domestic inflow of 312 million rupees for the session.

Top contributors to the rise of the ASPI were Sampath Bank (ended 3.1% stronger at 117.75), DFCC Bank (rose 7.1% to 117.75), NDB (climbed 5.5% to 91.80), HNB (rose 1.9% to 329.50) and Commercial Bank (up 2.2% to 141.50). (Colombo/Jan15/2025)