The Colombo bourse witnessed a bull rally across multiple sectors throughout the week, from Banking to Tourism sectors, ultimately closing the week with the index at 10,790, marking a solid gain of 100 points.
The week began with a subdued sentiment, which was primarily a response to the cabinet’s approval of a VAT increase from the current 15% to 18%, effective from January 2024. This led to a marginal loss of momentum in the market.
At the beginning of the week, the Consumer sector was prominent, driven by expectations of price increases resulting from the VAT adjustment and the associated profit margins. As the week progressed, the market returned to a positive trend, with a strong interest observed in the banking sector, particularly in stocks such as SAMP, COMB, HNB, and NDB, driven by positive expectations for quarterly results.
Furthermore, LIOC attracted significant buying interest throughout the week as the company reported over 100%QoQ growth in earnings for 2QFY24. It also continued to gain due to the World Bank’s expectation of oil prices soaring to USD150.0 a barrel amid the Israel-Hamas conflict.
Courtesy: First Capital Research
