CSE rebounds as lower oil prices and strong crossings lift sentiment

By Almas Equities Research

The Colombo Stock Exchange (CSE) recovered from the previous session’s losses on Tuesday, with both benchmark indices closing higher as improving external factors helped restore investor confidence. The rebound was largely driven by a sharp decline in global oil prices and a modest appreciation of the Sri Lankan Rupee against the US Dollar, easing concerns over the potential economic fallout from the ongoing Middle East conflict.

The improved backdrop encouraged buying interest in several fundamentally strong counters, while strategic crossings in selected blue-chip stocks provided additional support to market activity. Despite the positive close, overall investor participation remained measured, reflecting continued caution amid lingering geopolitical uncertainties and concerns over the global economic outlook.

The All Share Price Index (ASPI) gained 143.89 points, or 0.67%, to close at 21,547.17, while the S&P SL20 Index advanced 32.26 points, or 0.54%, to settle at 6,000.68.

Market turnover stood at LKR 2.16 billion, with a total share volume of 73.03 million shares traded during the session. The Capital Goods sector emerged as the largest contributor to turnover, generating LKR 0.79 billion from 18.18 million shares traded. HAYL.N led sector activity, recording a turnover of LKR 0.42 billion with 1.86 million shares changing hands.

Crossing transactions played a significant role in overall market activity, accounting for LKR 0.99 billion, or 46% of total turnover. The largest crossing was recorded in HAYL.N, amounting to LKR 0.31 billion involving 1.38 million shares.

Market breadth improved considerably, with 143 gainers against 56 decliners, reflecting a broad-based recovery and renewed buying interest across the market.

Among the key positive contributors, DIAL.N led the gains, followed by SAMP.N, LOLC.N, MELS.N, and CFLB.N, as investors accumulated selected counters perceived to offer value at current levels. On the downside, LION.N emerged as the largest drag on the index, while JKH.N, CARG.N, COMB.N, and CARS.N also weighed modestly on overall market performance.

Among notable trades, DIAL.N attracted strong investor interest, recording a turnover of LKR 0.08 billion with 1.88 million shares traded. The counter ended the session with a notable price gain of 6.80%, reflecting renewed optimism and buying momentum in the stock.