Market rebounds on earnings optimism and easing geopolitical tensions

By Almas Equities Research

The Colombo Stock Exchange witnessed a strong recovery today, with both indices closing firmly in positive territory, supported by improved investor sentiment. The upward momentum was largely driven by ongoing corporate earnings releases and expectations of robust March 2026 quarter results, which encouraged renewed buying interest across the market.

Further support came from easing geopolitical tensions in the Middle East, which helped restore confidence among investors and contributed to a more optimistic near-term outlook. The session reflected a shift toward accumulation, with broader participation and increased risk appetite.

The Food & Beverage sector led today’s market turnover, recording LKR 0.26 Bn with a share volume of 10.24 Mn. HPL.N was the primary contributor within the sector, generating the full LKR 0.26 Bn turnover with 10.24 Mn shares traded.

At the close, the ASPI advanced by 155.47 points (+0.69%) to settle at 22,739.77, while the S&P SL20 gained 31.89 points (+0.51%) to close at 6,245.13. Total market turnover stood at LKR 4.13 Bn, with share volume reaching a notable 377.0 Mn shares.

Crossings accounted for LKR 0.55 Bn, representing 13% of total turnover, with the largest crossing recorded in HPL.N amounting to LKR 0.26 Bn involving 10.24 Mn shares. Market breadth turned positive, with 152 gainers against 62 decliners, indicating stronger buying interest across the board.

On the positive side, JKH.N (+10.69 points) led index gains, followed by HNB.N, MELS.N, HAYL.N, and RIL.N. On the downside, DFCC.N (-3.37 points) was the main drag, while LION.N, CDB.N, RICH.N, and SFCL.N also exerted mild pressure on the index.

Among notable trades, REEF.N recorded significant activity with LKR 0.41 Bn in turnover and 83.53 Mn shares traded, posting a strong price gain of 15.56%, highlighting continued investor interest in selected high-volume counters.