Market slides sharply as broad-based selling pressure weighs on investor sentiment

By Almas Equities Research

The Colombo Stock Exchange witnessed a sharp decline during today’s trading session, as subdued investor confidence and prevailing market uncertainty triggered broad-based selling pressure from the opening bell. The market remained under pressure throughout the day, with cautious sentiment dominating trading activity amid the absence of strong buying interest.

Selling pressure intensified gradually across multiple sectors, dragging both benchmark indices lower as investors continued to reduce exposure amid heightened risk aversion. The ASPI trended downward steadily during the session, ultimately recording a significant decline of 509.02 points, reflecting the weak overall market tone.

The Capital Goods sector dominated today’s market turnover, recording LKR 1.36 Bn with 45.53 Mn shares traded. HAYL.N emerged as the leading contributor within the sector, generating LKR 0.19 Bn in turnover with 0.81 Mn shares traded.

At the close, the ASPI declined by 509.02 points (-2.28%) to settle at 21,789.05, while the S&P SL20 fell by 114.77 points (-1.87%) to close at 6,034.00. Total market turnover stood at LKR 3.80 Bn, with share volume recorded at 175.70 Mn shares.

Crossings accounted for LKR 0.63 Bn, representing 17% of total turnover, with the largest crossing recorded in JKH.N amounting to LKR 0.60 Bn involving 30.00 Mn shares traded. Market breadth weakened significantly, with only 31 gainers against 247 decliners, highlighting broad-based selling pressure across the market.

On the positive side, CARG.N (+4.08 points) led index gains, followed by KHC.N, PARQ.N, UCAR.N, and SDF.N. On the downside, MELS.N (-28.26 points) emerged as the main drag on the index, while SAMP.N, JKH.N, CINS.N, and HNB.N also exerted considerable downward pressure on market performance.