CSE Extends Decline Amid Heightened Volatility and Power Cut Concerns

By Almas Equities Research

The Colombo Stock Exchange experienced a highly volatile session on 17th March 2026, as early optimism quickly gave way to sharp selling pressure. The ASPI gained 263 points during the first half of the session, reflecting positive investor sentiment at the open. However, the market reversed direction sharply following the circulation of news regarding potential power cuts linked to fuel supply disruptions, ultimately closing 521 points lower.

The session was marked by significant fluctuations, with the index recording an intraday swing exceeding 750 points. This underscores the prevailing uncertainty in the market, as investors adopted a cautious approach amid emerging risks. The lack of clear direction was evident throughout the day, with sentiment shifting rapidly in response to external developments.

The Capital Goods sector dominated today’s market turnover, recording LKR 1.59 Bn with 58.23 Mn shares traded. JKH.N led sector activity, generating LKR 0.59 Bn in turnover with 31.05 Mn shares exchanged. Crossings accounted for LKR 0.87 Bn, representing 17% of total turnover, with the largest crossing recorded in JKH.N totaling LKR 0.42 Bn involving 22.20 Mn shares traded.

At the close, the ASPI declined by 521.17 points (-2.49%) to settle at 20,418.09, while the S&P SL20 fell by 123.94 points (-2.11%) to close at 5,760.99. Total market turnover stood at LKR 5.02 Bn with 273.84 Mn shares traded. Market breadth remained weak, with 32 gainers against 214 decliners, indicating continued selling pressure across the broader market.

Positive contributors to the index were led by LION.N (+6.58 points), followed by CDB.N, SFCL.N, ASPH.N, and SDB.N. On the downside, COMB.N (-29.92 points) led the decline, while HAYL.N, DOCK.N, NDB.N, and AEL.N also exerted pressure on the index. Among notable trades, PLR.N recorded significant activity, posting LKR 0.26 Bn in turnover with 5.63 Mn shares traded, alongside a price decline of 7.78%.