CSE closes lower but holds above 18,000

By Almas Equities Research 

The Colombo Stock Exchange (CSE) closed the trading day on a negative note, reflecting a decline in overall market momentum. Despite the downward movement, market sentiment remained mixed, with notable selling pressure observed as investors engaged in profit-taking. However, the elevated levels of share volume and turnover indicate sustained investor interest and active participation in the market, highlighting continued attention despite the day's decline.

The ASPI declined by 40.87 points, or 0.23%, to close at 18,100.92. Similarly, the S&P SL20 Index declined by 11.64  points, or 0.22%, ending the session at 5,347.40. Total market turnover amounted to LKR 5.65 billion, with 198.22 million shares traded. Market breadth reflected a negative sentiment, with 91 gainers and 123 losers contributing to the overall movement of the ASPI.

John Keells Holdings (JKH.N) emerged as the top contributor to the ASPI, adding 16.15 points, while Hayleys  PLC (HAYL.N) was the largest detractor, subtracting 9.76 points. The Capital Goods Sector led sectoral turnover with LKR 1.49 billion, accounting for nearly 27% of total market turnover.

Crossing transactions were involved today trading session, contributing approximately LKR 631.48 million roughly 11% of the day’s turnover. The largest crossings were recorded in shares of Access Engineering PLC (AEL.N) totaling LKR 117.50 million with 2.5 million shares traded.

On the macroeconomic front, investors are closely monitoring the potential implementation of reciprocal tariffs by the United States following the conclusion of a 90-day suspension period announced by President Donald Trump. This period is set to end on July 9, and market participants are now focused on the possible implications for Sri Lanka. The latest announcement released by the U.S. indicated a 30% tariff on Vietnam, revised from the previously proposed 46%. The recent tariff developments are expected to become a key driver for most export-oriented companies to the USA, particularly apparel sector counters.