Market surges on ceasefire optimism, records one of highest gains in CSE history

By Almas Equities Research

The Colombo Stock Exchange witnessed a powerful rebound, with both indices posting significant gains in a strongly bullish session. The ASPI surged by over 980 points within the first 10 minutes of trading, reflecting a sharp turnaround in investor sentiment. Although the index moderated thereafter, it maintained a strong upward trajectory, holding gains within the 800–900 point range throughout the session.

The rally was largely driven by the announcement of a ceasefire agreement between the United States and Iran, which eased global geopolitical tensions and alleviated concerns over potential supply disruptions. This positive development boosted global market sentiment, with the spillover effect clearly visible in the local market as investors returned with renewed confidence and aggressive buying interest.

Notably, the session marked one of the highest single-day index point gains recorded in the history of the Colombo Stock Exchange, underscoring the strength of the recovery and the intensity of market participation. Broad-based buying was evident across sectors, reflecting a strong shift in sentiment following recent volatility.

The Banking sector led market turnover, supported by substantial activity in NDB.N, while overall participation remained robust. Market breadth turned decisively positive, indicating widespread accumulation across counters.

At the close, the ASPI gained 885.14 points (+4.21%) to settle at 21,917.60, while the S&P SL20 advanced by 257.68 points (+4.42%) to close at 6,090.50. Total market turnover stood at LKR 6.61 Bn, with a share volume of 247.83 Mn shares traded.

Crossings contributed LKR 0.93 Bn, accounting for 14% of total turnover, with the largest crossing recorded in NDB.N amounting to LKR 0.39 Bn involving 3.59 Mn shares. Market breadth remained strongly positive, with 227 gainers against just 15 decliners, highlighting broad-based bullish sentiment.

Despite minor selling pressure in select stocks, the market closed firmly in positive territory, signaling a strong rebound and improved near-term outlook, as investors continue to respond to easing geopolitical risks and emerging opportunities.