The Colombo Stock Exchange (CSE) wrapped up Monday's trading session on a positive note, with both key indices reflecting the green trend, buoyed by an optimistic investor sentiment. The positive atmosphere followed the encouraging news last week regarding the International Monetary Fund's (IMF) staff level agreement and China's pledge of support to Sri Lanka.
The All Share Price Index demonstrated a slight gain, edging up by 0.11 percent or 11.58 points, closing at 10,862.11, while the S&P SL20 also posted an increase, rising by 0.18 percent or 5.59 points to reach 3,055.80.
Trading activity saw a turnover of 1 billion rupees, reflecting a significant level of market activity for the day.
Several notable companies saw their shares gain during the trading session, including Sampath Bank, Ceylon Tobacco, and Sri Lanka Telecom. The upbeat performance of these entities contributed to the overall positive sentiment among investors.
An analyst remarked, "Investors appear to be in a positive mindset as they continue to observe market dynamics."
However, there were instances of selling pressure on the primary dealing counter, primarily due to the conclusion of the First Capital Treasuries share dividend, leading to a decline in the share price. This decline, in turn, exerted selling pressure on other shares, including First Capital Holdings and Capital Alliance Treasuries.
Last week's announcement of an IMF Staff Level Agreement with Sri Lankan authorities, signaling progress in economic policies, was a significant driver of investor confidence. The agreement represents a step towards the completion of the first review of the 48-month Extended Fund Facility and potentially paves the way for Sri Lanka to access a second tranche of US$330 million in financing, pending approval by the IMF Executive Board.
Additionally, the Export-Import Bank of China conveyed a preliminary agreement with Sri Lanka on debt treatment. A meeting between Sri Lankan President Ranil Wickremesinghe and Chinese President Xi Jinping, along with Vice Premier Ding Xuexiang, underscored China's commitment to supporting Sri Lanka, particularly in the context of debt restructuring.
