CSE ends five-day rally as investors book profits

Saturday, 23 August 2025 00:27 - - {{hitsCtrl.values.hits}}

The Colombo stock market ended its five-session rally yesterday, with both indices ending lower due to prolonged selling pressure as investors booked profits.

The benchmark ASPI closed 0.32% lower, down 66.29 points from the previous day to 20,649.20. The active S&P SL20 ended 0.31% lower, down 18.65 points to 6,089.84.

Compared to a week ago, both indices were still up. During the week, the benchmark ASPI gained 430.84 points, or 2.13%, and the active S&P SL20 closed 195 points higher, or 3.03%.

Turnover was Rs. 45.4 billion this week, up from Rs. 32 billion last week. Foreign investors were net sellers during the week at Rs. 3.8 billion, compared to being net buyers the previous week at Rs. 246 million.

First Capital said that the Colombo stock market succumbed to prolonged selling pressure as investors expressed profit-taking sentiment, reversing the positive sentiment observed during the week.

Despite some early buying interest during the initial trading hours, the ASPI witnessed a sustained downtrend that continued until the close. Banking sector stocks, including Commercial Bank and DFCC Bank, along with conglomerates such as Ceylinco Holdings, Carson Cumberbatch, and Melstacorp, contributed significantly to the negative movement of the index.

Accordingly, the index closed in the red at 20,649, losing 66 points. Investor activity remained subdued, with limited participation from both retail and high-net-worth individuals, First Capital said, adding that turnover amounted to Rs. 5.1 billion, a 21% decrease from the monthly average of around Rs. 6.4 billion.

The Capital Goods sector dominated turnover, contributing 24%, followed by the Banking and Diversified Financials sectors’ 36% combined contribution. Foreign investors turned net buyers, recording a net inflow of Rs. 30.9 million.