CSE continues slump, loses over Rs. 1.1 t since ME war started

Wednesday, 18 March 2026 00:05 - - {{hitsCtrl.values.hits}}

The Colombo stock market failed to sustain an early trading rally yesterday and ended in red as panic selling gripped the market.

The CSE is continuing a slump triggered by the onset of the Middle East war on 28 February, losing over Rs. 1.1 trillion in value since.

Yesterday, the ASPI ended down 2.49% or 521.17 points at 20,418.09 and the active S&P SL20 was down 2.11% or 123.94 points at 5,760.99.

Market turnover was over Rs. 5 billion on nearly 274 million shares traded. Foreign investors were net sellers on a net outflow of Rs. 104.7 million.

First Capital Research said the bourse moved up in the morning session, yet fears of margin calls triggered panic selling among retail investors, while fuel shortage and concerns over power cuts further weighed on overall sentiment dragging the indices down at the latter part of the day, as investors stay cautious on rising global uncertainty.

Market breadth continued to be negative with 227 counters declining during the session, led by COMB, HAYL, DOCK, NDB and AEL, while only 34 counters recorded gains during the day.

HNW participation remained subdued, while retail activity was elevated amid panic-driven selling.

The capital goods sector led the daily turnover with a share of 32%, followed by the banking and diversified financials sectors collectively contributing 25%. The net foreign outflow this year was Rs. 17.2 billion.