CSE ends lower as turnover falls to year’s lowest, ASPI holds key support

By Almas Equities Research

The Colombo Stock Exchange ended Friday's session in negative territory, reversing the previous day's gains as subdued trading activity and cautious investor sentiment weighed on market performance. The ASPI declined for the third consecutive test of the key 21,400 support level, which continued to hold despite persistent selling pressure. Investors largely remained on the sidelines or engaged in selective profit-taking ahead of the upcoming quarterly earnings season, resulting in the lowest daily market turnover recorded so far this year.

The lack of strong institutional and retail participation kept market activity muted throughout the session, with both turnover and share volume declining significantly. Despite selective buying in a few fundamentally strong counters, overall sentiment remained weak as investors awaited clearer earnings-driven catalysts before increasing market exposure.

The ASPI fell by 42.16 points, or 0.20%, to close at 21,405.41, while the S&P SL20 Index declined by 5.31 points, or 0.09%, to settle at 5,999.68. Total market turnover amounted to just LKR 0.72 Bn, with 31.93 Mn shares traded, marking the lowest turnover recorded this year.

The Banking sector emerged as the largest contributor to market turnover, generating LKR 0.18 Bn with 1.57 Mn shares traded. SAMP.N led sector activity, recording LKR 0.08 Bn in turnover on 0.64 Mn shares traded. Crossing transactions accounted for only LKR 0.05 Bn, representing 7% of total market turnover, with the largest crossing recorded in LLUB.N amounting to LKR 0.02 Bn involving 0.15 Mn shares.

Market breadth remained negative, with 118 decliners outnumbering 64 gainers, reflecting continued selling pressure despite selective buying interest. COMB.N made the largest positive contribution to the ASPI, adding 13.41 points, followed by RIL.N, MELS.N, PLC.N, and LFIN.N. On the downside, LOLC.N exerted the biggest drag on the index, reducing it by 5.65 points, while JKH.N, CARG.N, PKME.N, and NDB.N also weighed on overall market performance.

Among notable trades, SAMP.N generated LKR 0.08 Bn in turnover on 0.64 Mn shares traded, although the counter closed unchanged from the previous session. With the ASPI continuing to hold above the key 21,400 support level despite weak participation, investor focus is expected to remain on the upcoming quarterly earnings releases, which could provide the next significant catalyst for market direction.