Bourse turns bullish

Turnover reaches Rs. 4.3 billion after two weeks

Continues upward swing

The Colombo stock market which was in the ‘red’ for over two weeks before the Presidential Election returned to ‘green’ territory soon after President Anura Kumara Dissanayake was elected President from last Monday.

The ‘bull run’ from Monday continued in the entire week signalling investor confidence in President Anura Kumara Dissanayake and giving a stamp of confidence towards his policies.

First Capital Research said that the market was on a muted note, with trading volumes subdued as investors exercised caution in the face of political uncertainty leading up to the Presidential Election.

“However, as the week unfolded and clarity emerged following the election results, the market experienced a noticeable resurgence in activity.”

Investor confidence was restored, fuelling strong upward momentum as a more bullish sentiment took hold, First Capital Stock Brokers said.  “This optimism was further supported by an agreement reached with the Ad-Hoc bondholder group, which ignited increased buying interest.” Capital Trust Research meanwhile said that the market recorded its highest single-day point gain yesterday, accompanied by heightened turnover levels.

The All Share Price Index gained 0.10% to settle at 11,671.87 while the more liquid S&P SL20 Index added 0.50% to end the session at 3,384.29.

Yesterday the turnover experienced an upswing, inclining to Rs 4.3 billion, marking a 260.4% increase from the monthly average standing at Rs.1.2 billion and a 7.5% increase over the previous session.The Banking sector solely contributed 39% to the overall turnover whilst the Real State and Capital Goods sectors jointly contributed 23% to the total turnover. (SS)

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