High corporate earnings and dividend payments spur stock market trading

By Hiran H.Senewiratne

The stock market was bullish yesterday due to heightening market expectations among investors over currently high corporate earnings plus dividend payments for the quarter. Thus an impetus was given to the stock market, analysts said.

Further, the bourse saw a day of positive sentiment and heightened momentum amid an improvement in investor confidence in the wake of the unveiling of the 2025 Budget.

Amid those developments both indices moved upwards. The All Share Price Index went up by 27.96 points while S and P SL20 rose by 32.23 points. Turnover stood at Rs 5.5 billion with ten crossings.

Those crossings were reported in Commercial Bank, which crossed 1.6 million shares to the tune of Rs 240 million; its shares traded at Rs 50 million, Sierra Cables 12.2 million shares crossed for Rs 220 million; its shares sold at Rs 18.20, LOLC Holding 230,000 shares crossed for Rs 158.7 million; its shares traded at Rs 690, Lanka IOC 1 million shares crossed to the tune of Rs 135 million; its shares sold at Rs 135, Melstacope 525,000 shares crossed to the tune of Rs 73.5 million; its shares traded at Rs 140, Sampath Bank 510,000 shares crossed for Rs 53.6 million; its shares traded at Rs 120.50, JKH 1.96 million shares crossed for Rs 43.8 million; its shares sold at Rs 22.50, CIC Holdings 300,000 shares crossed to the tune of Rs 37.8 million; its shares traded at Rs 126, ACL Cables 258,000 shares crossed for Rs 35.4 million; its shares traded at Rs 137.50 and Central Industries 150,000 shares crossed for Rs 24.6 million, its shares traded at Rs 164.

In the retail market top six companies that mainly contributed to the turnover were; Sampath Bank Rs 517 million (4.1 million shares traded), Sierra Cables Rs 369 million (20.4 million shares traded), HNB Rs 274 million (806,000 shares traded), JKH Rs 206 million (9.2 million shares traded), Lanka IOC Rs 186 million (1.3 million shares traded) and Hemas Holdings Rs 180 million (1.4 million shares traded). During the day 166 million share volumes changed hands in 27000 transactions.

Further Hemas Holdings announced a sub-division of shares, i.e. one share split into five shares in order to enhance the liquidity level.

It is said high net worth and institutional investor participation was noted in Sampath Bank, LOLC Holdings and Melstacorp. Mixed interest was observed in First Capital Holdings, HNBl and Dialog Axiata, while retail interest was noted in SMB Leasing nonvoting, LOLC Finance, and Hela Apparel Holdings.

The Insurance sector was the top contributor to the market turnover to a considerable extent. The share price of Ceylinco Holdings increased by Rs. 235.25 to Rs. 3,935.50.

The Diversified Financials sector was the second highest contributor to the market turnover (due to First Capital Holdings and LOLC Holdings), while the sector index increased.

Yesterday, the rupee was quoted at 295.30/50 to the US dollar in the spot market, broadly flat from the previous day’s close of Rs 295.25/50, dealers said, while bond yields were down. A bond maturing on 15.02.2028 was quoted at 10.03/05 percent, down from 10.05/10 percent. A bond maturing on 01.05.2028 was quoted at 10.13/15 percent, down from 10.15/20 percent. A bond maturing on 15.09.2029 was quoted at 10.75/77 percent, down from 10.75/80 percent. A bond maturing on 15.10.2030 was quoted at 11.18/22 percent, down from 11.20/25 percent.