Market retreats amid renewed geopolitical concerns

By Almas Equities Research

The Colombo Stock Exchange ended today’s session on a negative note, with both indices closing in red territory as renewed geopolitical tensions in the Middle East weighed on investor sentiment. The negative external backdrop led to a gradual decline in confidence, resulting in subdued trading activity throughout the session.

Market participation remained cautious, reflected in lower turnover and share volumes, as investors adopted a defensive stance amid rising uncertainty. The absence of strong buying interest further contributed to the downward pressure across the broader market.

The Banking sector led today’s market turnover, recording LKR 0.37 Bn with 3.40 Mn shares traded. COMB.N was the top contributor within the sector, generating LKR 0.13 Bn in turnover with 0.63 Mn shares traded, despite closing with a marginal price decline.

At the close, the ASPI declined by 110.70 points (-0.45%) to settle at 22,584.30, while the S&P SL20 fell by 31.40 points (-0.50%) to 6,213.24. Total market turnover stood at LKR 2.15 Bn, with share volume recorded at 97.86 Mn shares.

Crossings accounted for LKR 0.26 Bn, representing 12% of total turnover, with the largest crossing recorded in COMB.N amounting to LKR 0.10 Bn involving 0.5 Mn shares traded. Market breadth weakened further, with 58 gainers against 166 decliners, indicating broad-based selling pressure.

On the positive side, PKME.N (+3.24 points) led index support, followed by GRAN.N, MELS.N, CCS.N, and ASCO.N. On the downside, CTHR.N (-7.25 points) was the largest drag, while HAYL.N, SAMP.N, HHL.N, and JKH.N also weighed on overall performance.

Among notable trades, MBSL.N recorded active participation with LKR 0.07 Bn in turnover and 5.25 Mn shares traded, posting a notable price gain of 10.94%, standing out amid an otherwise weak session.