CSE keeps falling as Middle East tensions rise

By Almas Equities Research 

The Colombo Stock Exchange (CSE) ended the day in negative territory, continuing its recent decline, as both the All Share Price Index (ASPI) and the S&P SL20 fell. Selling pressure increased throughout the session, mainly due to rising tensions in the Middle East.

The All Share Price Index (ASPI) dropped by 210.51 points, or 1.22%, to close at 17,071.44. Similarly, the S&P SL20 Index fell by 57.43 points, or 1.11%, ending the session at 5,094.31. Total market turnover amounted to LKR 3.90 billion, with 181.24 million shares traded. Market breadth reflected a negative sentiment, with 40 gainers and 176 losers contributing to the overall movement of the ASPI.

Bukit Darah PLC (BUKI.N) emerged as the top contributor to the ASPI, adding 3.04 points, while Hayleys PLC (HAYL.N) was the largest detractor, subtracting 14.85 points. The Capital Goods sector led sectoral turnover with LKR 0.957 billion, accounting for nearly 24% of total market turnover.

Crossing transactions were involved today trading session, contributing approximately LKR 0.855 billion roughly 22% of the day’s turnover. The largest crossings were recorded in shares of  John Keells Holdings (JKH.N) totaling LKR 0.239 billion with 11 million shares traded.

Amid the escalating war situation in the Middle East, investor sentiment has turned sharply negative due to fears of potential global economic disruptions. However, for long-term investors, this environment presents strategic opportunities to capitalize on the momentum created by panic selling.