Colombo market extends decline as sentiment remains subdued

By Almas Equities Research

The Colombo stock market closed on a negative note on Thursday, with both benchmark indices ending the session in the red, as investor sentiment remained cautious amid the ongoing consolidation phase.

Market activity continued without a clear directional trend, with participants largely adopting a wait-and-see approach. Despite the weaker performance, increased retail participation supported liquidity, reflected in elevated trading volumes and a higher number of trades. Meanwhile, value-oriented investors remained selective, cautiously positioning themselves for opportunities as the market searches for stability near record levels.

Turnover was led by the Capital Goods sector, which recorded LKR 1.55 billion, supported by 57.52 million shares traded. HHL.N emerged as the sector’s top contributor, generating LKR 0.42 billion in turnover with 12.07 million shares exchanged.

The All Share Price Index (ASPI) declined by 91.22 points (-0.38%) to close at 23,900.89, while the S&P SL20 shed 14.55 points (-0.22%) to settle at 6,655.66. Total market turnover stood at LKR 6.92 billion, with share volume reaching 277.34 million.

Crossings accounted for LKR 1.76 billion, representing 25% of overall turnover. The largest crossing was recorded in PLR.N, which contributed LKR 0.71 billion through 15.93 million shares traded.

Market breadth weakened further, with only 77 gainers against 140 decliners, highlighting continued selling pressure across the broader market.

On the index movement front, PLR.N provided the strongest positive contribution, followed by WIND.N, SCAP.N, SLTL.N, and HAYL.N. However, losses in SFCL.N weighed heavily on the market, alongside declines in CTC.N, JKH.N, CARS.N, and CTHR.N.

Among notable trades, PLR.N stood out with significant activity, posting LKR 0.48 billion in turnover, trading 10.59 million shares, and ending the day with a price gain of 4.75%.