Colombo stock market extends negative run fuelled by Middle East tensions

Tuesday, 17 June 2025 03:16 - - {{hitsCtrl.values.hits}}

The Colombo stock market yesterday took last Friday’s negative run to a new week largely influenced by external factors.

The benchmark ASPI declined by 0.4% and the active S&P SL20 by 0.7%. On Friday the dip was greater with ASPI declining by 1.3% and the S&P SL20 by 1.6%.

Turnover yesterday was Rs. 3.15 billion (lower than Friday’s Rs. 4 billion) involving 149.5 million shares.

First Capital said the market experienced another volatile trading session as heightened Israel-Iran tensions continued to rattle investor confidence. The ASPI opened the week with a sharp decline, driven by mounting concerns over the Middle East conflict. Although the index partially rebounded on the back of bargain hunting, it failed to fully recover the previous losses and closed the day in the red.

HNB, COMB, LOLC, HAYL, and CTC emerged as the top negative contributors to the index. Moreover, widespread selling pressure triggered broad-based price declines across most sectors.

Amidst subdued HNW activity and relatively high retail investor participation, turnover was 37.5% below the monthly average.

The Diversified Financials sector dominated overall turnover with a 21% share, while the Capital Goods and Banking sectors jointly accounted for 34% of total market turnover. Foreign investors remained net sellers with a net outflow of Rs. 78.1 million.

NDB Securities said high net worth and institutional investor participation was noted in Citizens Development Business Finance, Hemas Holdings and Central Finance Company. Mixed interest was observed in John Keells Holdings, LVL Energy Fund and Lanka IOC whilst retail interest was noted in HNB Finance, Lanka Credit and Business Finance and LOLC Finance.

The Diversified Financials sector was the top contributor to the market turnover (due to Citizens Development Business Finance) whilst the sector index lost 0.43%. The share price of Citizens Development Business Finance recorded a gain of Rs. 19.25 to Rs. 344.The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings and Hemas Holdings) whilst the sector index decreased by 0.40%. The share price of John Keells Holdings decreased by 10 cents to Rs. 21.90. The share price of Hemas Holdings moved up by 40 cents to Rs. 29.

LVL Energy Fund Ltd., and Lanka IOC were also included amongst the top turnover contributors. The share price of LVL Energy Fund gained by 40 cents to Rs. 8. The share price of Lanka IOC appreciated by 50 cents to Rs. 137.25.

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