Colombo stocks rebound as ASPI gains

The Colombo stock market staged a recovery yesterday, with the All Share Price Index (ASPI) rising 0.89% to close at 22,407.04, while the more liquid S&P SL20 Index advanced 0.99% to 6,242.75.

Following the gain, the ASPI reduced its year to date loss to 0.96%, while the S&P SL20 extended its year to date return to 1.39%.

The positive performance came after several sessions of weakness in the market, which had largely trended lower since the sharp rebound triggered by easing Middle East tensions last week. Market participants, however, noted that investors are yet to see any tangible economic benefits from the improved geopolitical environment reflected in local equity valuations.

Although Brent crude oil prices have retreated to around USD 72.48 per barrel, close to levels seen before the Iran conflict began, the decline has yet to translate into lower domestic fuel prices, which remain around 50% higher than earlier levels.

Market breadth remained firmly positive, with 154 gainers against 50 decliners. The ASPI’s advance was mainly driven by gains in Dialog Axiata, John Keells Holdings and Hayleys.

Turnover improved to Rs. 2.73 billion from the exceptionally low levels recorded during the previous two sessions, although it remained below the year to date daily average turnover of Rs. 4.51 billion.

Commercial Credit and Finance, Digital Mobility Solutions Lanka and Samson International emerged as the most actively traded counters during the session.