Market remains rangebound amid geopolitical uncertainty

By Almas Equities Research

The Colombo Stock Exchange ended the session on a subdued note, with both indices posting marginal losses as uncertainty surrounding the Middle East conflict continued to cloud investor sentiment. With no clear directional cues emerging, the market opened in a stalemate and remained largely rangebound throughout the day.

Cautious positioning dominated trading activity, as investors adopted a wait-and-see approach amid the lack of resolution in global geopolitical developments. This resulted in lower participation levels, with both turnover and volumes easing compared to recent sessions. Overall sentiment remained neutral, reflecting hesitation to build aggressive positions in the current environment.

The Food, Beverage & Tobacco sector led market turnover, recording LKR 0.56 Bn with 10.13 Mn shares traded. CCS.N was the key contributor within the sector, generating LKR 0.32 Bn in turnover on 2.79 Mn shares traded, despite ending with a marginal price decline.

At the close, the ASPI declined by 73.23 points (-0.32%) to 22,566.58, while the S&P SL20 fell by 8.11 points (-0.13%) to 6,205.79. Total market turnover stood at LKR 2.82 Bn, with share volume at 125.99 Mn shares.

Crossings contributed LKR 0.46 Bn, accounting for 16% of total turnover, with the largest crossing recorded in CCS.N at LKR 0.18 Bn involving 1.60 Mn shares. Market breadth weakened further, with 75 gainers versus 133 decliners, indicating continued mild selling pressure across the board.

On the positive side, NHL.N (+5.63 points) led index support, followed by contributions from CCS.N, COMB.N, DIMO.N, and NTB.N. On the downside, BUKI.N (-12.11 points) was the largest drag, while BREW.N, RIL.N, LION.N, and SAMP.N also weighed on performance.

Among notable activity, NHL.N recorded heightened interest with LKR 0.13 Bn turnover and 9.0 Mn shares traded, closing the session with a 9.0% gain.