September 27, Colombo (LNW): The Colombo stock market, which had been in the ‘red’ for over two weeks prior to the Presidential Election, shifted to ‘green’ territory following the election of President Anura Kumara Dissanayake last Monday.
The ‘bull run’ that began on Monday continued throughout the week, signaling renewed investor confidence in President Dissanayake and his policies. First Capital Research noted that the market had been muted leading up to the election, with trading volumes subdued as investors exercised caution amid political uncertainty. However, as clarity emerged from the election results, market activity saw a significant resurgence.
Investor optimism was bolstered by an agreement with the Ad-Hoc bondholder group, which sparked increased buying interest. Capital Trust Research reported that the market recorded its highest single-day point gain yesterday, accompanied by elevated turnover levels.
The All Share Price Index rose by 0.10% to close at 11,671.87, while the more liquid S&P SL20 Index increased by 0.50% to finish at 3,384.29.
Turnover experienced a substantial uptick, reaching Rs 4.3 billion, marking a 260.4% increase from the monthly average of Rs 1.2 billion and a 7.5% rise from the previous session. The banking sector contributed 39% to the overall turnover, while the real estate and capital goods sectors combined for 23% of the total turnover.
