Stock prices in Sri Lanka climb, with materials and industrial sectors leading the upward trend
The Colombo Stock Exchange (CSE) All-Share index experienced a fourth consecutive session of growth, closing higher by 0.57% at 21,085.09. This positive trend came after two consecutive weeks of losses.
Foreign investors were net buyers, purchasing stocks worth 75.7 million rupees, marking the lowest net purchase in a single session since the CSE All-Share index marked a weekly gain. On the other hand, domestic investors were net sellers, offloading shares worth 6.49 billion rupees. The net purchase by foreign investors was 6.41 billion rupees less than the net sale by domestic investors.
The trading volume on the CSE index increased significantly, with a total of 377.1 million shares traded, compared to 254.6 million shares in the previous session. This increase was the highest in a single session since the CSE All-Share index started its four-session winning streak.
UB Finance PLC was the top percentage gainer on the index, with a gain of 35%, while SMB Finance was the second top percentage gainer, with a gain of 28.6%.
Credit ratings agency S&P Global announced an upgrade on Friday, citing progress in restructuring Sri Lanka's remaining commercial debt. The upgrade saw Sri Lanka's foreign currency ratings being upgraded from "selective default".
In recent weeks, several significant German companies have been acquired by foreign investors. The Italian Unicredit acquired Commerzbank AG for over 40 billion Euros; the Chinese E-Commerce giant JD.com is set to acquire the majority stake in MediaMarktSaturn, with the deal expected to close by the first half of 2026; and the financial investor Permira successfully sold its stake in the Swabian software provider TeamViewer. These acquisitions could potentially have a positive impact on the CSE, as foreign investors continue to show interest in the Sri Lankan market.
However, it's important to note that the equity market's turnover decreased to 6.51 billion Sri Lankan rupees from 6.86 billion rupees in the previous session, marking the first decrease in a session since the CSE All-Share index marked a weekly gain.
As the CSE continues to attract foreign investors and progresses with restructuring efforts, it remains to be seen how these factors will influence the market in the coming weeks.
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