CSE begins July with slight pullback but investor activity remains strong

By Almas Equities Research 

The Colombo Stock Exchange (CSE) commenced the month of July with a slight decline in both All Share Price Index (ASPI) and S&P SL20 and , following a period of sustained gains. Despite the market’s modest pullback, investor activity remained strong, reflecting continued confidence and interest. The overall performance was also influenced by 15 companies marking their ex-dividend dates today. Furthermore, the trading day marked the beginning of the September quarter, potentially setting the stage for renewed market dynamics. While both indices edged lower, the elevated trading volumes and persistent buying interest highlight the underlying strength in investor sentiment.

The ASPI declined by 29.99 points, or 0.17%, to close at 17,996.73. Similarly, the S&P SL20 Index declined by 9.54  points, or 0.18%, ending the session at 5,342.97. Total market turnover amounted to LKR 7.63 billion, with 679.191 million shares traded. Market breadth reflected a negative sentiment, with 77 gainers and 133 losers contributing to the overall movement of the ASPI.

Ceylon Grain Elevators (GRAN.N) emerged as the top contributor to the ASPI, adding 10.73 points, while Hatton National Bank  PLC (HNB.N) was the largest detractor, subtracting 8.68 points. The Diversified Financials led sectoral turnover with LKR 4.21 billion, accounting for nearly 55% of total market turnover.

Crossing transactions were significantly involved today trading session, contributing approximately LKR 3.78 billion roughly 50% of the day’s turnover. The largest crossings were recorded in shares of LOLC Finance PLC (LOFC.N) totaling LKR 3.30 billion with 550 million shares traded.

On the macroeconomic front, Sri Lanka recorded notable improvements across key indicators in June 2025. Tourist arrivals rose by 21.8% year-on-year to 138,241, reflecting a continued recovery in the tourism sector. Additionally, the country posted a current account surplus of USD 191 million in May 2025, bringing the cumulative surplus for the first five months of the year to USD 1,307.5 million. The construction sector also showed significant growth, with the Purchasing Managers’ Index (PMI) rising to 59.7 in May from 48.6 in April, according to data compiled by the Central Bank of Sri Lanka.