CSE slides sharply amid renewed geopolitical uncertainty

By Almas Equities Research

The Colombo Stock Exchange witnessed a notable downturn on 26th March 2026, as renewed uncertainty surrounding developments in the Middle East weighed heavily on investor sentiment. Following two consecutive sessions of strong gains, the market reversed course, with selling pressure dominating throughout the session and driving the indices sharply lower.

Trading activity remained moderate, with turnover and share volumes reflecting cautious participation. The ASPI experienced considerable intraday volatility, as early selling pressure persisted with limited buying interest to counterbalance the decline. The lack of strong institutional or value-driven support further contributed to the negative momentum, leaving the market without a clear directional base amid ongoing global concerns.

The Materials sector emerged as the leading contributor to market turnover, recording LKR 0.81 Bn with 76.99 Mn shares traded. ACME.N led sector activity, generating LKR 0.34 Bn in turnover with 51.72 Mn shares exchanged. Crossings accounted for LKR 0.43 Bn, representing 13% of total market turnover, with the largest crossing recorded in CIC.N totaling LKR 0.21 Bn involving 6.73 Mn shares traded.

At the close, the ASPI declined by 448.91 points (-2.05%) to settle at 21,419.94, while the S&P SL20 fell by 98.71 points (-1.61%) to close at 6,035.52. Total market turnover stood at LKR 3.27 Bn, with 176.33 Mn shares traded. Market breadth remained weak, with 25 gainers against 207 decliners, highlighting continued broad-based selling pressure.

On the positive side, KZOO.N (+4.03 points) contributed to the index gains, followed by CDB.N, LIOC.N, ASPH.N, and TPL.N. However, HNB.N (-23.18 points) led the decline, while MELS.N, COMB.N, CTHR.N, and JKH.N also exerted significant downward pressure on the index.

Among notable trades, ACME.N recorded significant activity, posting LKR 0.34 Bn in turnover with 51.64 Mn shares traded, alongside a price decline of 3.03%.