The Colombo Stock Exchange (CSE) rebounded sharply last week following the announcement of a ceasefire between Israel and Iran, which saw the CSE erasing the previous week’s losses and surging to a new all-time high.

After falling by around 322.55 basis points on Monday (23), the benchmark All Share Price Index (ASPI) surged over the succeeding days amidst a sharp rise in investor confidence, which saw it close at 17,740.26 basis points on Thursday (26), surpassing the previous all-time high of 17,661.45 basis points recorded on 12 June. 

The surge in investor confidence came on the heels of a short-term ceasefire agreement between Israel and Iran, announced on Tuesday morning (24), which brought a momentary calm to a region that has seen escalating geopolitical tensions in recent weeks.

Notable developments during the previous week include the announcement by East-West Properties PLC of the assignment of the land it had obtained on a 99-year lease from the Urban Development Authority (UDA) to a third party for a consideration of Rs. 2.25 billion. 

According to the corporate disclosure, 57 years remain on the 99-year lease that was originally granted.

Similarly, Colombo Land and Development Company PLC announced the sale of two condominium units and an accessory unit for a total consideration of Rs. 350 million to Power House Ltd.

Further, Nation Lanka Finance stated that the announced private placement of shares to a prospective investor had been delayed due to the non-submission of required documents and information by the prospective investor. 

The CSE had on 6 May announced that the trading of shares of Nation Lanka Finance would stand suspended from 19 May due to a disclaimer of opinion on the independent auditors’ report in the audited financials for the year ended 31 March 2024. 

The suspension was ultimately not given effect following the submission of documents by National Lanka Finance confirming the resolution of the matters that had given rise to the disclaimer audit opinion.