CSE closes August with marginal gains

The All Share Price Index (ASPI) gained 0.11% to close the final trading session of August at 21,338.69, while the more liquid S&P SL20 Index edged up 0.07% to 6,009.68.

Despite the marginal gains during the day, both indices ended August in positive territory. The ASPI gained 1.03% during the month, while the S&P SL20 Index rose 1.3%. However, on a year-to-date basis, the ASPI remains down 5.68%, while the S&P SL20 Index has declined 2.40%.

Market breadth was mixed, with 97 stocks recording gains against 99 decliners. The ASPI’s advance was primarily driven by Browns Investments, Carson Cumberbatch and Windforce.

Daily turnover stood at Rs. 1.01 Bn, significantly below the daily average turnover of Rs. 4.00 Bn. Sierra Cables, Access Engineering and Browns Investments were the leading contributors to turnover.

Sector-wise, trading activity was led by Capital Goods, Food and Beverages and Diversified Financials.

Meanwhile, Colombo’s inflation rate rose to 8.0% in August from 7.3% in July, largely driven by higher food prices. Food inflation increased 8.5% year-on-year and 0.6% during August.

Market analysts expect August inflation to represent the peak of the current inflation cycle, with price pressures likely to moderate from September onwards. This could help keep interest rates at current levels or potentially lead to lower rates, providing further support to equities.