CSE ends volatile session in green as geopolitical sentiment improves

By Almas Equities Research

The Colombo Stock Exchange opened the week with a volatile trading session on 06th March 2026, initially trending lower amid escalating geopolitical tensions in the Middle East, which weighed heavily on investor sentiment. In response, market participants adopted a cautious “wait-and-see” approach, resulting in subdued activity during the first half of the session.

Sentiment improved notably in the latter half of the day, supported by reports from Reuters indicating ongoing discussions of a potential peace deal between the United States and Iran. This development triggered renewed buying interest, higher turnover, and a recovery of more than 180 points from intraday lows. The market ultimately closed in positive territory for the ASPI, reflecting a balanced finish to a volatile session.

The Food, Beverage & Tobacco sector led market turnover, recording LKR 0.81 Bn with 4.79 Mn shares traded, entirely contributed by MELS.N, which also accounted for the full sector turnover. Crossings represented LKR 0.93 Bn (30% of total turnover), with the largest crossing recorded in MELS.N amounting to LKR 0.81 Bn involving 4.76 Mn shares traded.

At the close, the ASPI gained 9.18 points (+0.04%) to 21,126.60, while the S&P SL20 declined by 14.24 points (-0.24%) to 5,861.45. Total market turnover stood at LKR 3.02 Bn, with 81.99 Mn shares traded. Market breadth remained slightly negative, with 122 gainers against 91 decliners, indicating a mixed but cautious sentiment.

Positive contributors were led by DFCC.N (+8.44 points), followed by CARG.N, AEL.N, JKH.N, and AHPL.N. On the downside, COMB.N (-13.49 points) led the decline, while HNB.N, MELS.N, SAMP.N, and PKME.N also weighed on the index. Among notable trades, LMF.N recorded a turnover of LKR 0.09 Bn with 1.13 Mn shares traded, posting a price gain of 2.47%.