Delayed peace deal weighs on CSE as profit-taking pulls indices lower

By Almas Equities Research

The Colombo Stock Exchange ended Friday’s session in negative territory, reversing early gains as delays surrounding the formal signing of the peace agreement between the United States and Iran dampened investor sentiment. The market opened on a positive note, with the All Share Price Index (ASPI) climbing 46 points to its intraday high. However, optimism faded as the session progressed, with investors turning cautious amid uncertainty over the timing of the peace accord, triggering profit-taking and mild panic selling.

Despite subdued market activity, both benchmark indices closed lower. The ASPI declined by 74.83 points, or 0.33%, to close at 22,361.31, while the S&P SL20 Index fell 11.48 points, or 0.18%, to 6,215.30. Market turnover amounted to LKR 1.87 Bn, with a total share volume of 75.78 Mn shares, reflecting relatively low participation levels as investors remained on the sidelines awaiting clearer geopolitical signals.

The Capital Goods sector emerged as the largest contributor to market turnover, generating LKR 0.45 Bn with 14.75 Mn shares traded. HHL.N dominated sector activity, accounting for LKR 0.28 Bn in turnover with 8.65 Mn shares changing hands. Crossing transactions contributed LKR 0.17 Bn, representing 9% of total market turnover, with the largest crossing recorded in NDB.N amounting to LKR 0.08 Bn involving 0.79 Mn shares.

Market breadth weakened considerably, with 132 decliners outweighing 61 gainers, highlighting broad-based selling pressure and subdued investor sentiment. MELS.N emerged as the largest positive contributor to the ASPI, adding 8.24 points, while CFLB.N, LFIN.N, CDB.N and DIAL.N also provided support to the index. On the downside, SAMP.N exerted the biggest drag, shaving 9.18 points off the benchmark, followed by HNB.N, RIL.N, CTC.N and GRAN.N.

Among actively traded counters, ASCO.N recorded notable activity with a turnover of LKR 0.05 Bn and 0.95 Mn shares traded. However, the stock ended the session 2.89% lower, reflecting the cautious tone that prevailed across the broader market as investors wrapped up the week with a defensive stance.