CSE ends down 2% as Mideast tensions escalate

Friday, 27 March 2026 05:35 - - {{hitsCtrl.values.hits}}

The Colombo stock market ended a strong two-session rally yesterday to close in the red with Rs, 173 billion value wiped out after global oil prices increasing 2% to around $ 104 a barrel.

Oil prices increased as a resolution to the Mideast crisis appeared elusive.

During the previous two sessions, the market recovered 48% (Rs. 528 billion) of the Rs. 1.1 trillion value loss since the Middle East war began. The CSE set a record for the highest single-day gain in terms of ASPI points on Tuesday, which it bettered on Wednesday. By yesterday, the CSE was back in red.

The ASPI ended down 2.05% or 448.91 points to 21,419.94 and the active S&P SL20 was down 1.61% or 98.71 points at 6,035.52. Market turnover was nearly Rs. 3.3 billion on over 175.3 million shares traded. Foreigners were net sellers on a net outflow of Rs. 4.1 million.

First Capital Research said the bourse declined amid the heightened uncertainty surrounding US–Iran peace negotiations, coupled with profit-taking activity. HNB, MELS, COMB, CTHR and JKH emerged as the top negative contributors to the ASPI.

Participation from both HNW and retail investors remained at average levels. Daily turnover reflected a decline of 36.6% compared to the monthly average of Rs. 5.2 billion, with crossings accounting for 13.2%. The materials sector led the daily turnover with a 25% share, followed by the capital goods and banking sectors, which together contributed 27%.