CSE ends down sharply as currency depreciation weighs on sentiment

Thursday, 21 May 2026 05:33 - - {{hitsCtrl.values.hits}}

The Colombo stock market fell sharply yesterday to close in the red on concerns over the depreciating currency due to global supply shock headwinds from the Middle East war.

The ASPI was down a steep 2.28% or 509.02 points to 21,789.05 and the active S&P SL20 was down 1.87% or 114.77 points at 6,034.

Market turnover was over Rs. 3.8 billion on nearly 175.7 million shares traded. Foreign investors were net buyers for a second consecutive session on a net inflow of Rs. 39 million yesterday.

First Capital Research said the bourse ended on a negative note, with both indices closing significantly lower amid investor concerns over the continued depreciation of the LKR against the USD, prevailing macroeconomic uncertainties within the Sri Lankan economy, and escalating geopolitical tensions.

MELS, SAMP, JKH, CINS, and HNB emerged as the largest negative contributors to the ASPI.

Participation from HNW investors remained at relatively subdued levels, whereas retail investor activity was notably strong.

The capital goods sector led the daily turnover with a share of 36%, followed by the banking, and diversified financials sectors collectively contributing 24%.

NDB Securities said the indices closed in red as a result of price losses in counters such as Melstacorp, Sampath Bank and John Keells Holdings. High net worth and institutional investor participation was noted in John Keells Holdings, Hayleys and Access Engineering.

Mixed interest was observed in Softlogic Capital, Hatton National Bank non-voting and Sampath Bank whilst retail interest was noted in Citrus Leisure, Co-Operative Insurance Company and Browns Investments.

The capital goods sector was the top contributor to the market turnover due to John Keells Holdings, Hayleys and Access Engineering whilst the sector index lost 1.68%. The share price of John Keells Holdings was down 50 cents to close at Rs. 19.80, Hayleys declined Rs. 2 to Rs. 234, and Access Engineering fell 60 cents to Rs. 74.80.

The banking sector was the second highest contributor to the market turnover due to Hatton National Bank non-voting whilst the sector index decreased by 1.49%. The share price of Hatton National Bank non-voting declined by Rs. 9.25 to end at Rs. 329.25.

Softlogic Capital was also included amongst the top turnover contributors with the share price closing Re. 1 lower at Rs. 13.