CSE pulls back as banking counters drag indices lower

After a strong bullish run in recent sessions, the Colombo Stock Exchange (CSE) took a breather today, with the ASPI falling 198 points as heavyweight banking counters pulled the index down. Investor sentiment turned cautious, with profit-taking seen across key blue-chip counters amid unmet earnings expectations, shifting overall market momentum into negative territory.

As of 13th November, 162 companies have released their quarterly earnings, collectively reporting LKR 124.13 billion in net profits, marking an 11.5% QoQ and 38.7% YoY increase.

The Banking sector overtook the usually dominant Capital Goods sector, leading overall market activity with a turnover of LKR 2.52 billion (40% of total market turnover). HDFC.N emerged as the top contributor, recording LKR 646.7 million in active trading, supported by strong institutional participation and sustained investor confidence.

The ASPI closed down 198.24 points (-0.84%) at 23,461.46, while the S&P SL20 declined 95.56 points (-1.46%) to 6,462.04. Total market turnover stood at LKR 6.42 billion, with 167.84 million shares traded.

Crossings accounted for LKR 1.24 billion (19% of total turnover), with the largest crossing recorded in TKYO.X, generating LKR 700 million through 9.2 million shares traded.

Market breadth reflected a negative sentiment, with 79 gainers and 140 decliners, signaling profit-taking and mild consolidation following the recent strong rally.

Top positive contributors included HDFC.N (+27.72 points), followed by CARS.N, CTHR.N, SMOT.N, and MAL.N. On the downside, SAMP.N (-37.66 points) led the drag, while HNB.N, JKH.N, NDB.N, and BUKI.N also weighed on the index.

Among notable trades, HDFC.N stood out with a turnover of LKR 646 million and 8.87 million shares traded, reflecting heightened retail participation and short-term speculative interest, with the counter rising 24.5% in price during the session.