CSE plunges amid fuel shortage fears, recovers part of early losses

By Almas Equities Research

The market began the week on a sharply negative note on 16th March 2026, as intensifying concerns over a potential fuel shortage in the local market triggered panic selling at the Colombo Stock Exchange. The ASPI dropped significantly during the early trading hours, falling by 1,005.6 points in the first half of the session to reach an intraday low of 20,686.95. However, the market staged a partial recovery later in the day, regaining over 250 points before closing with a loss of 753 points.

Despite the decline in indices, trading activity remained relatively strong, supported by several notable block trades during the session. The presence of such transactions indicated increased participation from value investors who appeared to be accumulating positions at relatively lower price levels following the sharp correction.

The Diversified Financials sector dominated today’s turnover, recording LKR 1.73 Bn with 139.55 Mn shares traded. KZOO.N led sector activity, generating LKR 1.24 Bn in turnover with 104.20 Mn shares traded. Crossings accounted for LKR 1.63 Bn, representing 30% of total turnover, with the largest crossing recorded in KZOO.N totaling LKR 1.23 Bn involving 102.62 Mn shares traded.

At the close, the ASPI declined by 753.29 points (-3.47%) to settle at 21,939.26, while the S&P SL20 fell by 199.72 points (-3.28%) to close at 5,884.93. Total market turnover stood at LKR 6.59 Bn with 588.05 Mn shares traded. Market breadth remained notably weak, with only 12 gainers against 241 decliners, highlighting broad-based selling pressure across the market.

Positive contributors to the index were led by ATL.N (+1.45 points), followed by PABC.N, SHL.N, AMSL.N, and PHAR.N. On the downside, JKH.N (-45.33 points) led the decline, while COMB.N, HNB.N, DIAL.N, and DFCC.N also exerted pressure on the index. Among notable trades, KZOO.R recorded significant activity, posting LKR 0.29 Bn in turnover with 262.03 Mn shares traded, while the share price declined by 55.56%.