CSE declines following geopolitical tensions in middle east

By Almas Equities Research 

The Colombo Stock Exchange (CSE) closed the day on a negative note, following a major military strike launched by Israel on multiple military and nuclear sites across Iran. This geopolitical escalation led to heightened investor caution, contributing to a broad-based decline in the market throughout the trading session. The All Share Price Index (ASPI) recorded a significant drop of 234.37 points, or 1.33%, closing at 17,427.08. Similarly, the S&P SL20 Index declined by 83.15 points, or 1.58%, to close at 5,191.86.

Total market turnover amounted to LKR 3.98 billion, with 164.776 million shares traded. Market breadth reflected a negative sentiment, with 44 gainers and 173 losers contributing to the overall movement of the ASPI.

Senkadagala Finance  PLC (SFCL.N) emerged as the top contributor to the ASPI, adding 6.81 points, while Hatton National Bank PLC (HNB.N) was the largest detractor, subtracting 19 points. The Diversified Financial sector led sectoral turnover with LKR 0.980 billion, accounting for nearly 25% of total market turnover.

Crossing transactions were involved today trading session, contributing approximately LKR 232.655 million roughly 6% of the day’s turnover. The largest crossings were recorded in shares of  Capital Alliance Holdings Limited (CALH.N), totaling LKR 165 million with 10 million shares traded.

On the macroeconomic front, global oil prices surged following reports that Israel had launched strikes on Iran, marking a significant escalation in Middle East tensions. Brent Crude prices rose by over 10%, reaching their highest level since January, amid concerns that the conflict could disrupt energy supplies from the region.