Market surges on optimism over potential Iran–USA peace deal

By Almas Equities Research

The Colombo Stock Exchange concluded today’s session on a strong positive note, with both indices recording significant gains amid improving global sentiment. Investor confidence strengthened following reports of a possible peace agreement between Iran and the USA, which eased geopolitical concerns and boosted risk appetite across global markets. In addition, the sharp decline in global oil prices further supported sentiment, creating a favorable environment for the local equity market.

The market gained over 400 points during the session and successfully maintained those levels despite relatively low turnover, reflecting strong underlying investor confidence and expectations of continued support from value investors in the coming sessions. Broad-based buying interest was observed across several blue-chip and fundamentally strong counters.

Today’s market turnover was led by the Capital Goods sector, which recorded LKR 0.36 Bn with 8.53 Mn shares traded. DOCK.N emerged as the top contributor within the sector, generating LKR 0.89 Bn in turnover with 0.65 Mn shares traded.

At the close, the ASPI surged by 435.13 points (+1.98%) to settle at 22,364.77, while the S&P SL20 gained 118.08 points (+1.95%) to close at 6,179.10. Total market turnover stood at LKR 2.42 Bn, with share volume recorded at 106.10 Mn shares.

Crossings accounted for LKR 0.13 Bn, representing 5% of total turnover, with the largest crossing recorded in LFIN.N amounting to LKR 0.71 Bn involving 0.44 Mn shares traded. Market breadth improved significantly, with 198 gainers against 27 decliners, highlighting strong positive sentiment across the broader market.

On the positive side, DIAL.N (+36.78 points) led index gains, followed by COMB.N, JKH.N, SAMP.N, and HHL.N. On the downside, RICH.N (-2.87 points) emerged as the main drag, while HBS.N, DIPD.N, AUTO.N, and PLC.N also exerted mild pressure on the index.

Among notable trades, DIAL.N recorded strong activity with LKR 0.08 Bn in turnover and 2.15 Mn shares traded, posting a price gain of 6.70%, reflecting renewed investor interest in selected large-cap counters.