Profit-taking erases early gains as market ends mixed; banking sector leads activity

By Almas Equities Research

The Colombo Stock Exchange ended Wednesday’s session on a mixed note, as early buying momentum faded amid profit-taking activity. The market opened positively, with the ASPI climbing to an intraday high of 93 points during early trading, reflecting improved investor sentiment and increased market volatility. However, selling pressure emerged after the first hour of the session, prompting investors to lock in gains and causing the benchmark index to gradually surrender most of its advances.

Despite the intraday pullback, the ASPI managed to close marginally higher at 22,385.91, gaining 8.62 points (0.04%), while the S&P SL20 slipped 10.60 points (0.17%) to close at 6,210.72. The contrasting performance of the two indices highlighted the mixed sentiment prevailing among investors, as buying interest in selected counters was offset by weakness in several blue-chip stocks.

Market turnover amounted to LKR 2.55 Bn, with a total share volume of 107.03 Mn shares traded during the session. The Banking sector emerged as the largest contributor to market activity, generating LKR 0.75 Bn in turnover with 10.06 Mn shares traded. SDB.N led the sector, recording LKR 0.49 Bn in turnover and 8.60 Mn shares changing hands.

Value investor participation remained a notable feature of the session, with crossing transactions accounting for LKR 0.75 Bn, representing 30% of total market turnover. The largest crossing was recorded in SDB.N, amounting to LKR 0.46 Bn involving 8.07 Mn shares traded, indicating continued institutional and strategic investor interest in selected counters.

Market breadth remained negative, with 89 gainers against 126 decliners, reflecting broader selling pressure despite the ASPI’s marginal gain. Among the positive contributors to the index, CTHR.N added 8.48 points, while LION.N, HAYL.N, SPEN.N, and SDB.N also supported market performance. On the downside, DIAL.N emerged as the largest drag on the index, shedding 9.90 points, followed by JKH.N, LOLC.N, HNB.N, and DOCK.N.

Among notable trades, ASCO.N attracted significant investor attention, generating a turnover of LKR 0.11 Bn with 2.07 Mn shares traded. However, the counter closed 5.19% lower for the day, highlighting the cautious sentiment that continued to prevail across the broader market.