News & market updates

The ASPI closed the week up 0.2% at 12,313 (23-point gain) while the S&P SL20 fell 0.5%, with market turnover averaging Rs. 1.75 billion. Diversified financials led turnover and there was positive investor interest in plantation names (BALA, AGPL), LB Finance, Lankem, C T Holdings, Central Finance, HNB and Digital Mobility (PKME).

Acuity forecasts 20–40% upside for listed commercial banks (COMB.N0000, HNB.N0000, SAMP.N0000, NTB.N0000) from ISB restructuring, expecting provision writebacks of c.12–15%. The report anticipates the bond exchange in ~2–3 months and estimates NAV gains of ~Rs.50 for HNB and ~Rs.20 for COMB.

HNB PLC signed an MoU with John Keells CG Auto to offer leasing solutions for BYD electric vehicles, with competitive rates, exclusive card offers and discounts. The promotion includes insurance benefits (free life cover of Rs.4.5m and natural death cover of Rs.600,000) and servicing/spare-part discounts.

A new Fintech Forum Sri Lanka has launched to unite fintechs, banks and regulators to promote digital financial services, chaired by LankaPay CEO Channa de Silva; the board includes executives from LOLC Finance, Hatton National Bank, Commercial Bank and Dialog Finance. The forum will work with the Central Bank, ADB and BOI on policy, compliance, membership and international outreach.

Hatton National Bank (HNB) hosted the inaugural HNB Legacy Open at Nuwara Eliya Golf Club on 28 Sep 2024 with 45 participants; Noordeen Sethwala won the overall title. HNB says the event is part of its Private Banking client engagement and lifestyle initiatives.

Hatton National Bank (HNB PLC) launched its two-month Singithi Giftober savings campaign (18 Sep–18 Nov), offering gifts and vouchers up to Rs.50,000 for deposits of Rs.1,000–Rs.1 million. The campaign also promotes financial literacy, scholarships, high minor interest rates and digital TEEN+ features including a Tap & Go card.

Colombo Stock Exchange fell as the ASPI dropped 0.39% to 12,246 and the S&P SL20 fell 0.71% to 3,614, with banks (C T Holdings, HNB, Commercial Bank, Sampath, NDB) weighing on the index. Turnover was Rs1.4bn and there was a net foreign inflow of Rs153mn; Sri Lanka Telecom and Hayleys Fabric were among gainers.

Colombo market closed the week higher with the ASPI up 1.07% on Friday (ASPI +2% for the week) and S&P SL20 +1.10%, with turnover at Rs.2.3bn. Banking stocks (Commercial Bank, HNB), renewed interest in plantation names (KAHA, HAPU, UDPL, MASK) and strong foreign buying in JKH drove activity.

HNB and HNB Assurance signed an MOU with Macksons Solar to offer a bundled solar solution combining installations, insurance coverages (solar, life, medical, disability, maturity benefits) and tailored HNB loan facilities to customers.

The Clearing Association of Bankers held its 12th AGM on 4 October at HNB Towers; Sampath Bank’s Nalin Liyanage was elected CAB President for 2024/2025. Representatives from multiple commercial banks attended and Prompt Xpress served as the platinum sponsor.

Colombo Bourse closed marginally higher (ASPI +12) with net foreign inflows of Rs.267m, led by strong foreign buying in John Keells (JKH: net +Rs.132.7m; JKH up Rs.4.50 to Rs.198.25). Turnover was Rs.1.6bn; capital goods (via JKH), banking and F&B were top turnover contributors.

Colombo bourse saw net foreign inflows of Rs. 339.1 mn while the ASPI fell 19 points on turnover of Rs. 2.1 bn. John Keells drew the most foreign buying and led turnover, banks (Sampath, DFCC) weighed on the index and AGPL rose 9.8% after a dividend.

HNB PLC launched its two-month Singithi Giftober savings campaign (Sep 18–Nov 18), offering gifts and vouchers up to Rs.50,000 for deposits of Rs.1,000–1,000,000 to encourage minors' saving; the campaign includes digital banking features and retail voucher partnerships.

First Capital Asset Management launched the First Capital Money Plus Fund, offering returns comparable to fixed deposits with instant liquidity via a debit card issued by Hatton National Bank. The fund targets government securities and is regulated with trustee oversight and daily return calculations.

LTL Holdings has stayed its Rs. 20 billion IPO on the SEC's instruction until the Supreme Court rules on interim relief. Hatton National Bank PLC, as Banker to the Issue, will hold the IPO funds and may invest them in overnight/weekly REPOs; applicants can withdraw or retain applications and will receive 10.49% p.a. interest.

First Capital Asset Management launched the First Capital Money Plus Fund, offering returns comparable to fixed deposits with instant liquidity via a debit card issued by Hatton National Bank. The fund invests mainly in government securities with daily return calculations and HNB acting as trustee.

Colombo market rose as ASPI gained 0.9% (111 points) to 12,165, a three-month high, with turnover of Rs.2.77 bn led by banking stocks; S&P SL20 rose 1.3% and top contributors included CTHR, SAMP, HNB, JKH and COMB.

HNB Assurance PLC held its Partnership Awards 2024 in Bangkok — its first international awards — and reported its partnership channel crossed Rs.5 billion Gross Written Premium, contributing about 46% of total GWP. The company recorded 122 MDRT qualifiers and was named Best Life Bancassurance Provider for four consecutive years.

Sri Lanka stocks closed up 1% with the Colombo All Share Index rising 123.5 points to 12,053, led by gains in John Keells, Sampath, Hatton National Bank and NDB. Turnover was 2.83 billion rupees; Melstacorp rose while Lion Brewery fell.

Colombo's ASPI fell 4 points to 11,930 as the market stayed bearish, with S&P SL20 down 26 points (0.7%), turnover Rs.1.3bn and net foreign outflow of Rs.18m. Major negatives were HNB, SAMP, COMB, HAYL and JKH while CINS and PKME (PickMe) were among gainers; Commercial Credit and Lankem also rose.

Colombo market cooled after 11 straight gains as the ASPI fell about 59 points (0.5%) on turnover of Rs.2.3bn, with banks contributing 59% of turnover. Sampath, Commercial and Hatton National rose, while Vallibel One and Nations Trust fell; JKH, LOLC, NDB, Hayleys and DFCC weighed on the index.

Colombo Stock Exchange fell: All Share Index down 0.49% to 11,934 and S&P SL20 down 0.31% to 3,510, with turnover Rs 2.2bn and net foreign outflow Rs 123mn. Banks drew investor interest and crossings/top turnover involved Sampath, Commercial, HNB, Nations Trust, Hayleys and Vallibel One.

Colombo market extended gains as the ASPI closed at 11,992.91 (+1.16%), led by banking and consumer durables; HNB, Sampath, Commercial Bank, DFCC and John Keells were top positive contributors amid higher turnover and renewed apparel export demand.

Anura Kumara Dissanayake's 21 Sept. presidential win propelled the Colombo bourse—ASPI rose ~10% and S&P SL20 ~13% since the victory, returning indices to double-digit YTD gains. Turnover jumped to Rs.2.6bn with banks and capital goods leading; JKH, COMB, NDB, CFIN, SAMP and HNB were key positives while UML, MARA and BERU fell.

Distilleries Company of Sri Lanka appointed Ashoka Goonesekere as an Independent Non-Executive Director. He brings over 36 years of banking experience and holds or has held board and senior finance/risk roles at Pan Asia Banking (PABC.N0000), PMF Finance (PMB.N0000), Hatton National Bank (HNB.N0000) and DFCC Bank (DFCC.N0000).

Ceylon Hospitals resolved to amalgamate with its subsidiary Durdans Heart Centre via a share swap of 0.2933 CHPLC shares per DHC share, with a Rs33 cash option; trading in CHL shares was halted pending the disclosure. The Colombo bourse closed higher (ASPI +1.16%), led by gains in banking stocks including HNB, JKH, Commercial Bank, DFCC and Sampath.

Colombo Stock Exchange rose with the All Share Index up 0.69% to 11,855 and the S&P SL20 up 1.45% to 3,459 on turnover of 2.6 billion; banking stocks led gains while there was a net foreign outflow of Rs 123 million.

HNB PLC renewed its partnership with Hayleys Solar (Hayleys PLC) to offer HNB customers preferential financing for solar installations, including low monthly repayments cheaper than current electricity bills, preferential loan rates and 0% credit-card instalments for up to 48 months; Hayleys Solar will provide extended warranties and after-sales support.

Private credit in Sri Lanka rose by Rs135bn in August 2024, up from Rs60bn in July. The pickup supports bank lending but occurs amid central bank deflationary policy and warnings about inflation and rupee pressure.

ASPI rose 7.4% for the week, closing yesterday at 11,774 (up 102) as investor confidence returned amid declining government security yields. Capital goods and banks led turnover with Access Engineering, John Keells, Aitken Spence and HNB among top contributors; MGT gained 4.9% while Sampath dipped slightly.