The Colombo bourse continued its upward trajectory from last week closing and ended the week recording a gain of 97 points (+1.1%) to close the week at 8,928. The positive sentiment enticed during the week was driven predominantly by the banking sector (contributes 8% to total market cap) after the comments from the CBSL governor that the Sri Lanka’s public bank deposits and stability of the banking system will be safeguarded in any reorganization of domestic debt.
Continuing from the last quarter, results of the banking sector offered support to the banking sector performance during the week, with SEYB, DFCC and NTB recording exceptional results. However, investors remained cautious during the concerned week with profit-taking visible on selected banks.
Meanwhile retailers continued to remain sidelined during the week on fears of DDO and expected poor performance of the listed corporates during the Mar ended quarter, recording an average weekly trades of 9,941. Meanwhile, average weekly turnover was recorded at Rs. 668.8Mn, well below the average monthly turnover of Rs. 862.4Mn.
Net foreign selling continued for the second straight week and recorded at Rs. 16.0Mn with foreign selling predominantly dominated on the banking sector namely, HNB, SEYB and COMB. Meanwhile, top foreign buying during the week was centered upon MELS and DIAL.
Among the notable disclosures during the week, COOP announced that with reference to IRCSL/DG/LEG/2023/04/147, the IRCSL commission has decided to further suspend the registration of the General Insurance business with effect from 28 April 2023 and the suspension will be forced till 30 June 2023. The decision was made by the IRCSL due to failure to maintain the composition of the board of directors in accordance with the articles of association of CICPLC.
Meanwhile, several listed corporates announced dividends during the week and amongst the notable players Nestle announced a final dividend of Rs. 75.0/share whilst Durdans Hospital announced a dividend of Rs. 2.3/share for both voting and non-voting shares. Moreover, Ceylon Tobacco Company also announced a dividend of Rs. 28.8/share post Friday’s trading session. - First Capital Research