CSE opens the week lower as broad-based selling offsets strong institutional activity

By Almas Equities Research

The Colombo Stock Exchange commenced the week on a negative note, with both benchmark indices declining steadily throughout Monday's trading session as broad-based selling pressure continued to weigh on investor sentiment. Although market turnover and share volume improved compared to the previous session, the increase was primarily driven by crossing transactions rather than widespread buying interest, highlighting the cautious stance adopted by market participants.

Retail participation remained subdued as investors continued to await stronger earnings-driven catalysts, while significant crossing activity indicated that institutional and value-oriented investors remained active in selectively accumulating fundamentally strong counters. Despite this institutional participation, persistent selling pressure across the broader market kept both indices firmly in negative territory by the close.

The ASPI declined by 197.31 points, or 0.92%, to close at 21,208.10, while the S&P SL20 Index fell by 56.46 points, or 0.94%, to settle at 5,943.22. Total market turnover amounted to LKR 2.63 Bn, with 66.49 Mn shares traded.

The Food Retailing sector emerged as the largest contributor to market turnover, generating LKR 1.14 Bn with 2.28 Mn shares traded. CARG.N led the sector, recording LKR 0.58 Bn in turnover on 0.91 Mn shares traded. Crossing transactions accounted for LKR 1.35 Bn, representing 51% of total market turnover, with the largest crossing recorded in CTHR.N amounting to LKR 0.56 Bn involving 1.10 Mn shares.

Market breadth remained notably weak, with 179 decliners outweighing just 33 gainers, underscoring the broad-based selling pressure across the market. CDB.N emerged as the largest positive contributor to the ASPI, adding 2.42 points, followed by GREG.N, CTC.N, CABO.N, and CTLD.N. On the downside, DIAL.N exerted the biggest drag on the index, reducing it by 15.42 points, while COMB.N, RICH.N, JKH.N, and CARS.N also weighed heavily on overall market performance.

Among notable trades, JKH.N recorded significant activity, generating LKR 0.10 Bn in turnover on 5.52 Mn shares traded, while the counter declined by 1.01% during the session. Despite increased institutional participation through crossings, the market's weak breadth and continued selling pressure suggest investors remain cautious as they await the upcoming quarterly earnings releases for clearer direction.