The Colombo Stock Exchange closed higher on Tuesday as investors positioned themselves ahead of an uncertain ceasefire deadline between the United States and Iran, brokers said.
The All Share Price Index gained 0.25%, or 55.45 points, to close at 22,625.48, while the more liquid S&P SL20 index slipped 0.01%, or 0.33 points, to 6,222.46. Turnover was Rs. 3.56 billion, with consumer services contributing Rs. 1.02 billion of the day’s activity.
“If a deal doesn’t get signed, the market has already factored in a certain amount of volatility,” Raynal Wickremeratne, Head of Strategy at Softlogic Stockbrokers, told EconomyNext. “But if it gets signed, we will see a major win for the market.”
Bukit Darah led the positive contributors, jumping 8.49% to Rs. 999.50, with Central Finance Company up 1.90% at Rs. 254.75 and Melstacorp adding 0.69% to Rs. 182. On the downside, National Development Bank fell 1.09% to Rs. 113.25 — notable given the bank’s recently disclosed Rs. 380 million fraud investigation — with DFCC Bank off 0.69% at Rs. 144 and John Keells Holdings down 0.49% at Rs. 20.30.
Global markets offered a mixed backdrop. The Dow Jones 30 was flat at 49,442.56 in overnight trade, while the Hang Seng gained 0.48% to 26,487.48 and India’s Nifty50 added 0.79% to 24,556.65.
Separately, the bourse said it had approved Abans Finance’s listing of Rs. 1.5 billion in 12.5% unsecured, subordinated, redeemable debentures, with subscriptions opening on April 24. NDB Investment Bank is managing the issue.
The Tuesday gain reversed Monday’s Hormuz-driven decline, with traders watching for the outcome of Wednesday’s US-Iran ceasefire deadline.
Source: EconomyNext.
