CSE continues to decline as geopolitical situation in the Middle East worsens

By Almas Equities Research 

The Colombo Stock Exchange (CSE) closed the day on a negative note, continuing its recent downward trend, with both the All Share Price Index (ASPI) and the S&P SL20 recording declines. During the initial hour of trading, the ASPI showed a gain of nearly 150 points; however, the market reversed course in the latter part of the session, driven by panic selling among investors amid escalating geopolitical tensions in the Middle East. 

The All Share Price Index (ASPI) dropped by 78.24 points, or 0.45%, to close at 17,281.95. Similarly, the S&P SL20 Index fell by 3.74 points, or 0.07%, ending the session at 5,151.74. Total market turnover amounted to LKR 6.810 billion, with 175.84 million shares traded. Market breadth reflected a negative sentiment, with 54 gainers and 154 losers contributing to the overall movement of the ASPI.

Hayleys  PLC (HAYL.N) emerged as the top contributor to the ASPI, adding 14.15 points, while National Development Bank PLC (NDB.N) was the largest detractor, subtracting 10.63 points. The Capital Goods sector led sectoral turnover with LKR 2.28 billion, accounting for nearly 34% of total market turnover.

Crossing transactions were involved today trading session, contributing approximately LKR 2.08 billion roughly 31% of the day’s turnover. The largest crossings were recorded in shares of  Hayleys PLC (HAYL.N) totaling LKR 1.204 billion with 7.30 million shares traded.

On the macroeconomic front, Sri Lanka's services sector experienced a moderated expansion in May 2025, as indicated by the Purchasing Managers’ Index (PMI) , which recorded a value of 57.0, compared to 60.6 in April. In contrast, the manufacturing sector showed a notable recovery, with the PMI rising to 55.5 in May from 40.1 in the previous month, reflecting a resurgence in business activity.