The Colombo Stock Exchange closed within touching distance of the 23,000 mark on Thursday for the first time, lifted by reports that Washington had sent Iran a one-page memorandum of understanding via Pakistan aimed at ending the Gulf conflict and reopening the Strait of Hormuz.
The All Share Price Index gained 1.13 percent, or 258.09 points, to close at 22,997 — short by just three points of breaching 23,000, which would be a milestone level for the market. The more liquid S&P SL20 added 0.75 percent, or 47.13 points, to 6,292.
Market turnover settled at Rs. 5.28 billion, with materials counters leading at Rs. 1.38 billion. The 245-point afternoon push followed Wednesday’s close at 22,739 and tracked the same risk-on tone that has lifted Asian equities since US officials signalled fresh diplomatic movement on Iran.
Top positive contributors to the index were Ceylinco Insurance (+4.07 percent at Rs. 3,285), John Keells Holdings (+1.46 percent at Rs. 20.80), Digital Mobility Solutions Lanka (+4.53 percent at Rs. 161.50) and Central Finance Company (+2.86 percent at Rs. 252). Dialog Axiata (-2.78 percent at Rs. 35.00), PGP Glass Ceylon (-2.69 percent at Rs. 54.30) and HNB (-0.18 percent at Rs. 413.50) capped the gains.
Block trades included one million shares of John Keells Holdings, 909,500 shares of CIC Holdings, 500,000 of Overseas Realty, and 250,000 each of Digital Mobility Solutions Lanka and Lanka Milk Foods.
In a separate disclosure, SMB Finance announced the resignation of Chief Executive Officer Supul Chamikara Wijesinghe with effect from June 3.
The rally has been building since Wednesday on US-Iran de-escalation hopes, with EconomyNext citing analysts attributing the bulk of Thursday’s afternoon move to the MoU report.
In the parallel currency and bond markets, however, the rupee gave back ground despite the equity rally, closing at 321.70/85 to the US dollar in the spot market — weaker from 321.00/30 the previous day. Government bond yields eased across the curve, with the 01.07.2028 paper at 9.65/70 percent (from 9.70/75), the 15.10.2029 at 9.90/10.00 percent (from 10.05/15), the 01.07.2030 at 10.10/20 percent (from 10.18/23), the 01.06.2033 at 10.95/11.05 percent (from 11.00/10), the 15.06.2034 at 11.15/22 percent (from 11.25/35) and the 15.06.2035 at 11.20/30 percent (from 11.25/35). The mixed picture — equities up, rupee weaker, yields down — reflects positioning ahead of any concrete US-Iran movement.
