Indices retreat as profit-taking weigh on sentiment

The Colombo Stock Exchange (CSE) concluded the week ending 28 November on a weaker footing, with both the ASPI and the S&P SL20 ending in negative territory amid cautious investor sentiment. 
The ASPI recorded a nearly 4 percent pullback from its all-time high, marking the second consecutive week of decline as profit-taking continued to dominate market activity. “Trading activity was further dampened by adverse weather conditions across the country, which led to a shortened trading session on Friday, limited to just three hours. As a result, the market experienced subdued participation with lower turnover and volumes for the week,” Almas Equities Research said in its weekly roundup report.
On a weekly basis, the ASPI declined by 1.17 percent or 269.9 points, while the S&P SL20 fell by 1.56 percent or 97.6 points. Total market turnover for the week stood at Rs. 16 billion with 547 million shares traded. This reflected a week-on-week decline of 16 percent in turnover and 22 percnt in share volume, highlighting the impact of cautious investor behaviour and the shortened trading session.
“Despite the ongoing correction, market participants remain cautiously optimistic, with attention now turning to the broader economic recovery following the recent adverse weather conditions.  “Investors are expected to closely monitor developments on post-disaster economic normalisation, which is likely to influence near-term market direction,” Almas Equities Research said.