Crossings dominate market activity as ASPI extends decline

By Almas Equities Research

The Colombo Stock Exchange ended Tuesday's session on a mixed note, with the ASPI closing lower despite a strong start to the day, as renewed selling pressure erased early gains. The benchmark index climbed nearly 70 points within the first 15 minutes of trading, supported by buying interest in selected large-cap counters. However, the momentum gradually faded as profit-taking and continued selling pressure weighed on the broader market, leaving the ASPI to finish the session in negative territory.

Although market turnover rose sharply compared to the previous session, the improvement was largely driven by high-value crossing transactions rather than broad-based investor participation. Retail sentiment remained cautious, while institutional and value-oriented investors continued to execute strategic block trades. The ASPI also edged closer to the key 21,000-point level, reflecting the prevailing cautious mood among market participants.

The ASPI declined by 62.31 points, or 0.29%, to close at 21,145.73, while the S&P SL20 Index edged up by 1.79 points, or 0.03%, to settle at 5,945.01. Total market turnover amounted to LKR 3.27 Bn, with 38.52 Mn shares traded.

The Food Retailing sector emerged as the largest contributor to market turnover, generating LKR 2.32 Bn with 4.32 Mn shares traded. CARG.N dominated sector activity, recording LKR 2.32 Bn in turnover on 3.69 Mn shares traded. Crossing transactions accounted for LKR 2.49 Bn, representing a substantial 76% of total market turnover, with the largest crossing recorded in CARG.N amounting to LKR 2.26 Bn involving 3.59 Mn shares.

Market breadth remained weak, with 133 decliners outweighing 76 gainers, highlighting continued selling pressure despite selective buying interest in several large-cap counters. DIAL.N was the largest positive contributor to the ASPI, adding 9.81 points, followed by JKH.N, LION.N, SEMB.X, and SPEN.N. On the downside, CINS.N exerted the biggest drag on the index, reducing it by 22.56 points, while COMB.N, RICH.N, CARS.N, and HARI.N also weighed on overall market performance.

Among notable trades, CARG.N generated LKR 2.32 Bn in turnover on 3.69 Mn shares traded, while the counter edged up by 0.04% during the session. Despite the significant increase in turnover, the dominance of crossing transactions and weak market breadth suggest that broader investor sentiment remains cautious as participants await stronger earnings-driven catalysts.