CSE ends slightly lower as early gains fade amid selective buying and weak sentiment

By Almas Equities Research

The Colombo Stock Exchange (CSE) opened the session on a positive note, with the ASPI gaining around 60 points during the first hour of trading, supported by early buying interest across selected counters. However, the initial momentum was not sustained, as the index gradually lost ground through the remainder of the session and drifted lower towards the close, reflecting a lack of strong follow-through buying.

Market activity remained relatively subdued throughout the day, with overall turnover and volume largely supported by crossing transactions. While institutional participation provided some depth to selected counters, broader market engagement remained cautious, with investors continuing to adopt a wait-and-see approach amid expectations of improved economic and corporate performance in the period ahead.

The Capital Goods sector dominated turnover, contributing LKR 0.83 Bn on 24.78 Mn shares traded. Within the sector, HHL.N led activity, generating LKR 0.69 Bn in turnover on 21.27 Mn shares, underscoring concentrated interest in selected large-cap counters.

In terms of market performance, the ASPI closed 21.79 points lower (-0.10%) at 22,221.91, while the S&P SL20 declined marginally by 1.97 points (-0.03%) to close at 6,204.54. Total market turnover stood at LKR 1.51 Bn, with a share volume of 47.44 Mn.

Crossings accounted for 52% of total turnover at LKR 0.78 Bn, with the largest crossing recorded in HHL.N at LKR 0.68 Bn involving 20.94 Mn shares. Market breadth reflected a slightly negative bias, with 69 gainers against 127 decliners, indicating subdued but selective participation across the board.

Among key movers, CARG.N, DIAL.N, MELS.N, BUKI.N, and AEL.N contributed positively to index support, while SPEN.N led the downside pressure, followed by DFCC.N, CTC.N, CCS.N, and COMB.N.

Notable activity was seen in LHCL.N, which recorded turnover of LKR 0.02 Bn on 0.16 Mn shares traded, alongside a price gain of 4.83%, highlighting continued selective interest in mid-cap counters despite the overall cautious tone.