CSE ends mixed as investors eye policy signals and trade talks

By Almas Equities Research 

The Colombo Stock Exchange (CSE) closed on a mixed note on July 21st, 2025, following a volatile trading session. The ASPI initially surged by nearly 155 points in early trading but faced selling pressure mid-session, dropping around 81 points before recovering to end with a gain of 70.38 points (+0.37%) at 19,044.08. Meanwhile, the S&P SL20 index dipped 8.44 points (-0.15%), settling at 5,646.99. Market turnover was recorded at LKR 5.39 billion, with a share volume of 216.42 million, while crossings contributed LKR 396.78 million, roughly 7.5% of total turnover. In terms of crossing transactions, SUN.N posted the highest, with LKR 137.8 million in turnover from 5.0 million shares.

The Capital Goods sector led the market, accounting for nearly 16% of the day’s total turnover. DFCC.N was the top contributor to the ASPI, generating a turnover of LKR 139.75 million from 1.11 million shares. CFIN.N, COOP.N, CTHR.N, and ASCO.N also contributed positively, with ASCO.N recording a significant 24.7% increase in its share price. On the negative side, JKH.N dragged the index down, with a turnover of LKR 98.51 million from 3.89 million shares. Other key decliners included AEL.N, COMB.N, HNB.N and BREW.N. Overall, 118 counters gained while 106 declined, reflecting selective investor activity and a cautious trading environment.

On the macroeconomic front, optimism is brewing as Sri Lanka’s trade negotiations with the United States enter a promising stage. Deputy Minister of Economic Development, Professor Anil Jayantha Fernando, confirmed that discussions on tariff reductions beyond the current 30% rate are progressing positively. 

Additionally, investor attention is now focused on the Central Bank’s upcoming monetary policy announcement on Wednesday, July 23, where the current Overnight Policy Rate stands at 7.75%. The outcome may influence future market direction and investor sentiment in the days ahead.