“Geopolitical tensions weigh on Colombo Bourse performance”

Iran’s strikes on the Fujairah oil port and subsequent U.S. retaliation have intensified geopolitical tensions despite optimism over peace talks, dampening sentiment and driving the Colombo Bourse lower today.

The ASPI declined by 111 points to close at 22,584, while the S&P SL20 fell by 31 points to 6,213, with CINS, CTHR, HAYL, SAMP, and HHL emerging as the top negative contributors, -First Capital Research said.

“Market participation from both HNW and retail investors remained subdued, reflecting an overall weak sentiment.”

Daily turnover stood at LKR 2.2Bn, marking a 42.1% decline from the monthly average of LKR 3.7Bn, with the Banking sector leading turnover at 17%, followed by the Diversified Financials and Capital Goods sectors collectively contributing 32%. Foreign investors remained net sellers, recording a net outflow of LKR 42.0Mn.

PKME dominated the overall turnover with LKR 166.6Mn (7.7%) followed by COMB with LKR 133.7Mn (6.2%) worth of shares being traded during the session. In terms of volume, REEF saw 21.0Mn shares being traded (21.5%), whereas ASPH accounted for 12.5Mn shares (12.8%). Overall market volume increased by 8.5% to 97.9Mn.

Foreign investors remained net sellers, posting a net outflow of LKR 41.9Mn. JKH, CTHR and SAMP recorded the highest foreign outflows while the largest foreign inflows were attracted by ACL, HNB and NDB.