Market slides on oil Shock as global risk sentiment turns negative

By Almas Equities Research

The Colombo Stock Exchange closed in negative territory today, with both indices declining sharply amid a broad-based sell-off triggered by deteriorating global sentiment. Brent crude oil prices surged above the $120 mark following escalating geopolitical tensions in the Middle East, reinforcing a risk-off environment across global markets. This external shock weighed heavily on investor confidence locally, leading to sustained selling pressure throughout the session.

Trading activity reflected heightened caution, as participants reacted to rising macroeconomic uncertainty and renewed inflation concerns linked to elevated energy costs. Overall sentiment remained firmly negative, with investors reducing exposure across key counters amid limited short-term visibility.

The Capital Goods sector led today’s market turnover, recording LKR 0.98 Bn with 35.66 Mn shares traded. JKH.N was the largest contributor within the sector, generating LKR 0.58 Bn in turnover with 28.58 Mn shares traded, despite closing with a marginal decline.

At the close, the ASPI fell 85.47 points (-0.38%) to 22,549.53, while the S&P SL20 declined by 33.45 points (-0.54%) to 6,207.56. Total market turnover stood at LKR 3.44 Bn, with share volume at 155.80 Mn shares.

Crossings accounted for LKR 0.89 Bn, representing 25% of total turnover, with the largest crossing recorded in JKH.N at LKR 0.36 Bn involving 18.0 Mn shares. Market breadth remained weak, with 61 gainers against 155 decliners, indicating broad-based selling pressure.

On the positive side, LION.N (+8.05 points) led index support, followed by contributions from CTHR.N, WATA.N, CARG.N, and CARS.N. On the downside, DIAL.N (-14.15 points) was the largest drag, while JKH.N, COMB.N, CCS.N, and MELS.N also weighed on overall performance.

Among notable trades, KOTA.N recorded active participation with LKR 0.14 Bn turnover and 14.35 Mn shares traded, closing with a price gain of 4.21%, standing out in an otherwise weak market session.