Market Extends Rally as Strong Volumes Signal Renewed Confidence

By Almas Equities Research

The Colombo market continued its upward trajectory on 05th March 2026, building on the previous session’s recovery with stronger momentum. Improved turnover and a significant increase in share volumes underscored strengthening investor sentiment. The presence of sizeable block trades further signaled growing confidence among value investors, offering a constructive outlook for near-term market stability.

The Capital Goods sector dominated market turnover, recording LKR 2.21 Bn with a substantial 238.09 Mn shares traded. HNBF.N led sector activity, generating LKR 1.43 Bn in turnover with 164.41 Mn shares exchanged. Crossings accounted for LKR 1.81 Bn, representing 31% of total turnover, with the largest block trade recorded in HNBF.N amounting to LKR 1.10 Bn involving 129.65 Mn shares.

At the close, the ASPI advanced 256.12 points (+1.13%) to settle at 22,833.53, while the S&P SL20 gained 68.14 points (+1.07%) to close at 6,425.80. Total market turnover reached LKR 5.68 Bn, supported by a share volume of 330.46 Mn shares. Market breadth remained firmly positive, with 177 gainers against 52 decliners, reflecting broad-based buying interest across counters.

Among key contributors, JKH.N led the positive side with a 22.66-point contribution, followed by DFCC.N, NDB.N, DIAL.N, and COMB.N. On the downside, SFCL.N declined by 11.67 points, while MELS.N, SAMP.N, SDB.N, and HHL.N exerted mild pressure on the index. Notably, LCBF.N recorded strong activity, posting LKR 0.18 Bn in turnover with 21.62 Mn shares traded, alongside a significant price gain of 23.94%.

Overall, the session reflected sustained recovery momentum, supported by increased liquidity and renewed value-driven participation, reinforcing the market’s gradual stabilization following recent volatility.