Bank Stocks Push CSE Indexes Higher
ASI was up by 133.04 points or 2.38 percent to close at 5725.44 while more liquid Milanka index was up by 163.35 points or 3.43 percent to close at 4921.81. Total turnover amounted to 1.71 billion rupees.
Almost all banking stocks gained today as Fitch Ratings Lanka issued a positive outlook for Commercial Banks in Sri Lanka. 3,483,500 shares of Commercial Bank of Ceylon Plc (COMB) traded and closed 4.00 rupees higher at Rs 104.00 while Sampath Bank was up by 8.70 to end the day at Rs 178.60. Nation Trust Bank Plc closed at Rs 61.20, up five rupees. National Development Bank closed 4.90 higher at Rs 123.30.
Fitch Ratings Lanka says that its Outlook for the majority of Sri Lankan banks is Stable, underpinned by improved earnings prospects due to post-war growth in the domestic economy as well as the government’s capacity to support the banking system. However, rapid loan growth will test the banks’ risk management systems and funding profiles. They further said that Sri Lankan banking system’s ability to manage above-average loan expansion on a sustained basis. However, the agency believes that any deterioration in asset quality may not be as severe as that seen in 2008 and 2009.
There were 193 gainers and only 20 losers for the day. John Keells Holdings Plc was up by 4.50 to close at Rs 167.90. More than 14 million shares of newly listed Asia Asset Finance Ltd changed hands and closed at Rs 7.10 the same price of the previous day.
Banking stocks may continue to go up during the next week trading.
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Tagged with: Colombo Stock Exchange • cse • daily
Filed under: Daily Stock Market Report
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Good to see Bank shares go up but why foreigners are selling Commercial Bank (COMB) shares continuously? Any idea?
I don’t think there are special reasons for foreign selling in Commercial Bank because bank’s performance is excellent. Some Analysts and brokers said the foreign outflow appeared to be due to a Europe-based fund selling the COMB shares and not linked to internal matters of the Bank.