Early rally fades as profit-taking leaves market mixed

By Almas Equities Research

The Colombo Stock Exchange (CSE) ended Tuesday’s session on a mixed note, with the All Share Price Index (ASPI) closing marginally lower while the S&P SL20 Index managed to post a slight gain. The market began the day on a strong footing, with the ASPI surging more than 180 points during the first half hour of trading as buying interest supported broad market momentum.

However, the early optimism proved difficult to sustain, as profit-taking gradually emerged across several counters throughout the session. The selling pressure erased most of the intraday gains, resulting in a largely flat close despite the strong start. The session highlighted the market’s continued struggle to establish a clear direction, with investors balancing short-term profit-taking against selective accumulation of fundamentally strong stocks.

Investor participation remained healthy, particularly among value investors, as crossing transactions accounted for more than 40% of total market turnover. This suggests continued confidence in selected counters despite the cautious broader market environment.

The Materials sector dominated trading activity, generating LKR 1.55 billion in turnover from 52.41 million shares traded. CIC.N emerged as the sector’s top contributor, recording LKR 1.42 billion in turnover with 44.45 million shares changing hands.

The ASPI declined by 3.36 points, or 0.02%, to close at 22,377.29, while the S&P SL20 Index edged up by 1.79 points, or 0.03%, to close at 6,221.32.

Total market turnover stood at LKR 3.85 billion, while share volume reached 152.55 million shares. Crossing transactions amounted to LKR 1.61 billion, representing 42% of total turnover. The largest crossing was recorded in CIC.N, generating LKR 1.18 billion in turnover with 36.95 million shares traded.

Market breadth remained broadly balanced, with 108 gainers and 106 decliners, reflecting mixed investor sentiment amid heightened intraday volatility.

Among the positive contributors, SUN.N led gains with a contribution of 4.19 points, followed by COMB.N, SPEN.N, ASCO.N, and LFIN.N. On the downside, CARG.N emerged as the largest drag on the index, shedding 6.59 points, while CINS.N, SAMP.N, NDB.N, and CFIN.N also weighed on market performance.

Among notable trades, SINS.N recorded significant activity with a turnover of LKR 0.14 billion and 1.89 million shares traded. The counter closed 3.86% lower, reflecting the profit-taking pressure observed across selected stocks during the session.