CSE turns red, post Local Government Election

The Colombo Stock Exchange (CSE) exhibited negative momentum throughout the trading session. The All-Share Price Index (ASPI) moved lower, closing below the 15,900 mark, following the local government election in Sri Lanka.

Opening on a negative note, the ASPI continued its downward, closing at 15,841.60, a decline of 119.99 points (0.75 percent). The S&P SL20 Index also posted a decrease, falling by 40.78 points (0.87 percent) to settle at 4,634.14.

Total market turnover amounted to Rs.3.20 billion, with 202.66 million shares traded. While the market was negative, both turnover and the number of shares traded were the highest so far. Market breadth was notably negative, with only 49 gainers and 142 losers contributed to the ASPI. 

Cargills Ceylon PLC (CARG.N) emerged as the top contributor to the ASPI, adding 3.19 points, while John Keells Holdings PLC (JKH.N) was the largest drag, subtracting 19.34 points. The Food, Beverage and Tobacco  sector led in terms of turnover contribution.

Crossing transactions contributed significantly to overall turnover, totaling Rs. 1.8 billion, or roughly 56 percent of daily turnover. The largest crossings were recorded from Agalawatte Plantations PLC (AGL.N), with a total of Rs.1.68 billion from 32.50 million shares traded. 

On the macroeconomic front, following the local election, the National People’s Power party, led by President Anura Dissanayake, secured the most seats in over 260 out of 339 local authorities. This outcome is seen as a positive sign for political stability, which could support the current economy.