Middle East tensions wipe out Rs. 117 b in value at CSE

Tuesday, 24 June 2025 03:42 - - {{hitsCtrl.values.hits}}

The Colombo stock market yesterday suffered a Rs. 117 billion loss of value and the biggest intra-day dip as investors reacted negatively to the worsening situation in the Middle East.

The benchmark ASPI declined by 1.9% and the active S&P SL20 by 2.1%. Market capitalisation dropped by Rs. 117 billion to close at Rs. 6 trillion from Rs. 6.117 trillion on Friday (20).

Turnover yesterday was Rs. 2.5 billion involving 193.8 million shares. Turnover was led by HNBN (Rs. 217 million), SAMP (Rs. 167 million), and EAST (Rs. 131 million).

First Capital said the Colombo bourse saw its biggest intraday loss since 9 April, as escalating tensions in the Middle East spooked investors. Retail selling pressure dominated the session, pushing the market into a bearish start to the week. The ASPI plunged sharply in the first few minutes of trading and continued to remain low throughout the day, ultimately closing at 16,765, losing 323 points.

Additionally, almost every sector suffered from widespread price decreases. SAMP, COMB, JKH, MELS, and HAYL emerged as the key negative contributors to the index.

Turnover was 51% below the monthly average. The Banking sector led turnover, contributing 26%, followed by the Capital Goods and Diversified Financials sectors, jointly accounting for 30%.

Asia Securities said overall, the market witnessed a downward trend primarily due to banking sector counters such as PABC (-3.5%), NDB (-3.1%), DFCC (-2.9%), SAMP (-2.7%), COMBN (-2.3%), NTBN (-1.0%), and HNBN (-0.8%). Moreover, MGT (-4.8%), AEL (-3.4%), CCS (-3.0%), BIL (-2.6%), and HAYL (-2.8%) closed in the red, leading to a broad-based decline during the session. SAMP (-22 points), COMBN (-20 points), JKH (-19 points), and MELS (-16 points) came in as the major laggards for the day. The market breadth was negative, with 26 price gainers and 217 decliners.

Foreigners recorded a net inflow of Rs. 69.3 million. Net foreign buying topped in CINS.N at Rs. 54.7 million and selling topped in EAST at Rs. 71.6 million.

NDB Securities said high net worth and institutional investor participation was noted in Capital Alliance Holdings Ltd., Dialog Axiata, and Hatton National Bank. Mixed interest was observed in Sampath Bank, East West Properties, and Access Engineering, whilst retail interest was noted in Nation Lanka Finance, Waskaduwa Beach Resort, and HNB Finance.

The Banking sector was the top contributor to the market turnover (due to Hatton National Bank and Sampath Bank) whilst the sector index lost 2.04%. The share price of Hatton National Bank decreased by Rs. 2.50 to Rs. 317.50. The share price of Sampath Bank lost Rs. 3.25 to Rs. 118.

The Capital Goods sector was the second highest contributor to the market turnover (due to Access Engineering and John Keells Holdings), whilst the sector index decreased by 2.27%. The share price of Access Engineering recorded a loss of Rs. 1.40 to Rs. 39.50. The share price of John Keells Holdings declined by Rs. 0.50 to Rs. 21.10.

East West Properties was also included amongst the top turnover contributors, with its share price gaining Rs. 2.20 to Rs. 22.00.

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