Market retreats as profit-taking surfaces near ATH levels

By Almas Equities Research

The Colombo Stock Exchange (CSE) opened the week on a cautious note, as both benchmark indices declined throughout the session. Despite healthy trading volumes and elevated turnover, investor sentiment remained subdued amid ongoing profit-taking after recent rallies and the market’s proximity to all-time high levels.

The All Share Price Index (ASPI) closed the day down 103.73 points (-0.44%) at 23,627.87, while the S&P SL20 slipped 20.73 points (-0.32%) to 6,539.35. Turnover reached LKR 4.68 billion, with 214.26 million shares changing hands, supported by active participation across major counters.

Activity was dominated by the Capital Goods sector, which recorded LKR 1.25 billion in turnover from 22.73 million shares traded. Within the sector, TKYO.X generated the highest turnover, contributing LKR 0.40 billion with 4.39 million shares exchanging hands. Crossings accounted for LKR 0.92 billion or roughly 20% of total turnover, with ACL.N recording the largest block trade at LKR 0.29 billion on 2.84 million shares.

Market breadth continued to weaken, with decliners significantly outnumbering gainers, reflecting sustained selling pressure. SFCL.N emerged as one of the few positive contributors, adding 6.87 points to the index, supported by selective buying in counters such as DIAL.N, WIND.N, CARS.N, and HAYL.N. On the downside, DOCK.N led the drag, easing 16.03 points, while COMB.N, NTB.N, SAMP.N, and SPEN.N also weighed on the session.

Among notable trades, REEF.N recorded significant movement, generating LKR 286 million in turnover with 63.05 million shares traded, and closing higher with a 4.65% price gain, highlighting continued interest in actively traded stocks despite broader market weakness.

Overall, the session was characterized by profit-taking and consolidation as investors absorbed recent gains while positioning cautiously in a market trading near record levels.