Market faces sharp decline amid disaster concerns

By Almas Equities Research

The Colombo Stock Exchange witnessed another challenging session on Thursday, as investor sentiment was weighed down by adverse weather conditions and ongoing assessments of the disaster’s impact. Caution prevailed in the market, with muted trading volumes and turnover reflecting investors’ hesitancy amid uncertainty.

This week marked a pronounced pullback, with the ASPI declining sharply amid shortened trading days due to public holidays. The index is now down nearly 9.5% from its all-time high, approaching a key technical support level, which may serve as a potential floor for a rebound.

The Capital Goods and Banking sectors were the primary contributors to market activity, generating LKR 1.08 Bn and LKR 1.02 Bn in turnover, respectively. HNB.N led the session’s turnover with LKR 271 Mn from 0.70 Mn shares traded, highlighting sustained institutional participation.

Total market turnover amounted to LKR 3.96 Bn, with 132.09 Mn shares changing hands. Crossings contributed LKR 0.43 Bn (10% of total turnover), led by JKH.N, which recorded a block trade of LKR 125.6 Mn involving 6 Mn shares.

Market breadth remained weak, with only 30 gainers compared to 202 decliners, signaling continued consolidation pressure following recent gains.

On the performance front, DOCK.N was the top positive contributor, followed by PABC.N, CDB.N, DIAL.N, and AHPL.N. On the downside, SAMP.N led the drag, with JKH.N, COMB.N, DFCC.N, and NDB.N also weighing on the index.

Notable trades included COMB.N, which recorded a turnover of LKR 242 Mn from 1.2 Mn shares traded through the board, closing down 1.8%.