ASPI rebounds as market sentiment turns positive

The All Share Price Index (ASPI) rebounded today, rising 0.22% to close at 22,436.14. Meanwhile, the more liquid S&P SL20 index also gained 0.26% to settle at 6,226.78.

With today’s performance, year-to-date losses in the broader index narrowed to 0.83%, while the S&P SL20 remains 1.13% higher for the year.

Investor sentiment was supported by optimism following the interim agreement to ease tensions related to the Iran conflict earlier in the week. Market participants are now watching for the potential rollback of certain war-era measures, including fuel pricing adjustments, which could further support equity valuations. Oil prices have eased back closer to pre-conflict levels, with Brent crude trading just below USD 78 per barrel, compared to around USD 72 before the onset of the conflict.

Sri Lanka has increased fuel prices by approximately 50% since the start of the Iran war.

Market breadth was slightly positive, with 106 gainers against 92 decliners. The ASPI’s advance was primarily driven by gains in Aitken Spence PLC, Dialog Axiata PLC and Melstacorp PLC.

Market turnover stood at LKR 3.12 billion, below the year-to-date daily average of LKR 4.64 billion, though an improvement from the previous session. Trading activity was led by Digital Mobility Solutions Lanka PLC, Dialog Axiata PLC and National Development Bank PLC.