Colombo bourse ends lower despite heavy block activity

By Almas Equities Research

Sri Lanka’s equity market closed on a negative note on Friday, with both benchmark indices ending in the red, even as overall turnover remained robust, supported by heavy block activity and renewed interest from value investors.

Market sentiment weakened during the session amid profit-taking and increased selling pressure across a broad range of counters. Outside a handful of large negotiated trades, overall participation remained cautious, reflecting a softer tone in the wider market.

The Capital Goods sector emerged as the dominant contributor to market turnover, recording LKR 4.14 billion, with a volume of 54.14 million shares. DOCK.N led activity within the sector, accounting for LKR 2.67 billion in turnover on the back of 17.35 million shares traded, making it the single largest contributor to market activity for the day.

At the close, the All Share Price Index (ASPI) declined by 88.58 points, or 0.37%, to settle at 23,812.31, while the S&P SL20 Index slipped 14.51 points, or 0.22%, to 6,641.15. Total market turnover stood at LKR 9.19 billion, with 211.56 million shares changing hands.

Crossings played a significant role in sustaining turnover, contributing LKR 3.45 billion, or 37% of total market activity. The largest crossing was recorded in HNB.N, which generated LKR 2.05 billion in turnover through the transfer of 15.93 million shares.

Market breadth continued to weaken, with 64 gainers against 159 decliners, underscoring the prevailing selling pressure across the broader market.

On the index, DOCK.N provided the strongest positive contribution, adding 17 points, followed by gains in CTC.N, CFIN.N, LIOC.N, and CARS.N. On the downside, HAYL.N was the biggest drag on the market, shedding 9.78 points, while RICH.N, BUKI.N, BREW.N, and HARI.N also weighed on overall performance.

Among individual counters, AFS.N drew investor attention with a notable price movement, recording a turnover of LKR 0.10 billion on a volume of 2.47 million shares, alongside a strong price gain of 19.73%.

Overall, the session reflected a market grappling with near-term profit-taking, even as selective interest and sizable block trades continued to underpin liquidity.