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View all(76)📉 Colombo Bourse Extends Losing Streak as ASPI Drops Sharply
The Colombo stock market continued its downward trend today, marking the fifth consecutive day of losses with a significant decline in key indices. • Overall Figures: The All Share Price Index (ASPI) fell sharply by 521.17 points (2.49%), closing at 20,418.09. • Blue-chip Performance: The S&P SL20 Index, which tracks the most liquid stocks, declined by 123.94 points to settle at 5,760.99. • Market Liquidity: Total market turnover for the session was recorded at Rs. 5.02 Bn. • Market Sentiment: This session marks a continued bearish streak for the Colombo Stock Exchange (CSE), reflecting a week of sustained selling pressure. Based on provisional daily market data.
Oil Prices Surge 2%+ Amid Strait of Hormuz Disruptions 📈
• Global Market Impact: Brent crude jumped 2.5% to US$ 102.69/bbl, while WTI rose 2.6% to US$ 95.92/bbl. This follows a volatile period where the Strait of Hormuz—handling 20% of global oil and LNG trade—remains largely shut due to the three-week-old U.S.-Israeli conflict with Iran. • Supply Risks & Logistics: Brent forecasts for 2026 have been revised upward, with Standard Chartered projecting US$ 85.50 (up from $70) due to potential prolonged disruptions. The UAE, a major OPEC producer, has reportedly cut production by more than half. • Sri Lankan Context: As a net importer of refined petroleum and fossil fuels, sustained prices above $100/bbl pose significant risks to Sri Lanka’s trade balance and domestic energy costs. Rising global energy prices typically exert pressure on the electricity and transport sectors, potentially impacting the cost of production for apparel & textiles and tea exports. • Geopolitical Strain: Supply remains tight as U.S. allies rebuff calls for naval escorts in the Gulf. The IEA is considering further strategic reserve releases to curb inflation and rising costs. Israel indicates at least three more weeks of military operations, suggesting continued market volatility.
Market Alert: Bond Yields Rise and Rupee Depreciates Amid Global Oil Surge 📈
The secondary bond market saw yields trend upward as global oil prices remained elevated, with Brent crude surpassing US$ 100 per barrel. Market activity remained subdued as investors adopted a cautious stance due to Middle East unrest and shipping disruptions. • Secondary Bond Market Yields on selected maturities closed higher with limited trading volumes: • 2028: 01.07.28 at 9.25%; 15.12.28 at 9.30% • 2029: 15.12.29 at 9.65% • 2030: 01.03.30 traded between 9.70% – 9.75% • 2031-2034: 15.03.31 at 9.90%; 01.10.32 at 10.30%; 15.09.34 at 10.82% • Total transacted volume (March 13): Rs. 7.93 Bn • Currency & Forex The LKR depreciated further against the US Dollar, closing at Rs. 311.50/311.60 compared to the previous close of Rs. 311.15/311.25. • Total USD/LKR traded volume (March 13): US$ 36.35 Mn • Money Market Liquidity The market recorded a net liquidity surplus of Rs. 245.53 Bn. • The Central Bank (CBSL) drained Rs. 88 Bn via overnight repo at 7.46%. • Rs. 157.53 Bn was deposited at the Standing Deposit Facility Rate (SDFR) of 7.25%. • Weighted average rates: Call Money at 7.59%; Repo at 7.61%. _Data based on provisional market reports from Wealth Trust Securities and CBSL._
📉 CSE Plunges 3.5% as Mideast Tensions Wipe Out Rs. 701 Bn
The Colombo Stock Exchange (CSE) hit a six-month low on Monday, driven by investor panic over escalating conflict in the Middle East. Since 28 February, the market has seen a massive value erosion of approximately Rs. 701 Bn. • Market Performance Overview The All Share Price Index (ASPI) dropped 3.47% (753.29 points) to close at 20,939.26. The blue-chip S&P SL20 index fell 3.28% to 5,884.93, marking an 11.3% decline since the onset of regional instability. • Sector & Counter Movements Market breadth was heavily negative, with 261 counters declining against only 12 gainers. Key heavyweights leading the slide included John Keells Holdings (JKH), Commercial Bank (COMB), HNB, Dialog, and DFCC. • Trading Activity & Turnover Daily turnover reached Rs. 6.6 Bn with 588 million shares traded. • Diversified Financials led turnover at 26%. • Capital Goods and Banking sectors collectively contributed 38%. • Ceylon Land and Equity was the top turnover contributor (Rs. 1.25 Bn). • Investor Sentiment Retail activity remained elevated due to panic-selling, while High Net Worth (HNW) participation was subdued. Despite the slump, foreigners remained net buyers with an inflow of Rs. 54.4 Mn, as some investors engaged in bargain-hunting at discounted price levels.
Mixed Asia-Pacific Performance Amid Surging Oil Prices 📈
Asia-Pacific equity markets showed mixed results yesterday as geopolitical tensions between the U.S. and Iran pushed global energy benchmarks higher, impacting regional sentiment and trade. • Energy Market Surge: Global oil prices climbed significantly, with Brent crude rising 0.48% to US$ 103.7 per barrel and U.S. crude hovering near US$ 98.7. This surge followed potential military escalations targeting Iran’s primary export infrastructure. • Regional Market Winners: • Hong Kong: The Hang Seng Index led gains, rising 1.45% to close at 25,834.02. • South Korea: The Kospi advanced 1.14% to end at 5,549.85. • Regional Market Laggards: • Australia: The S&P/ASX 200 declined 0.39%, closing at 8,583.40. • Japan: The Nikkei 225 edged down 0.13% to 53,751.15. • China: The CSI 300 remained largely flat at 4,671.56, despite positive domestic economic data. • Impact on Sri Lanka: Rising global oil prices (above US$ 100 a barrel) typically pressure Sri Lanka’s energy sector and foreign exchange reserves due to increased import costs, potentially impacting the cost of production for manufacturing and logistics.
📉 ASPI Slumps Below 21,000 Mark for First Time in Six Months
The Colombo Stock Exchange (CSE) faced a sharp downturn during today’s session (March 16), with key indices hitting multi-month lows amid significant selling pressure. • Market Performance: The All Share Price Index (ASPI) dropped below the critical 21,000 threshold to close at 20,939.26. This is the lowest level recorded since September 18, 2025. • Blue-Chip Decline: The S&P SL20 Index, representing the top 20 largest and most liquid stocks, slipped 199.72 points to end at 5,884.93. • Turnover & Liquidity: Total market turnover reached Rs. 6.59 Bn, reflecting active participation despite the bearish sentiment. • Investor Activity: • Domestic participation dominated the market, with domestic purchases at Rs. 6.49 Bn against sales of Rs. 6.54 Bn. • Foreign investors remained net buyers, recording Rs. 97 Mn in purchases against Rs. 42 Mn in sales. The decline marks a notable shift in investor sentiment for the banking and diversified financials sectors as the market adjusts to new support levels. _Note: Based on provisional market data for March 16, 2026._
Global Markets Wary as Hormuz Tensions Elevate Energy Risks 📈
Regional and global markets started the week on a cautious note as ongoing hostilities in the Gulf impact the inflation outlook, directly affecting Sri Lanka’s energy import costs and broader economic stability. • Energy & Commodities: Oil prices remain elevated with Brent rising 0.8% to US$ 104.01/bbl. While potential shipping coalitions in the Strait of Hormuz offer some hope, the "risk premium" remains high, threatening net energy importers. Gold held steady at a significant US$ 5,012/oz. • Monetary Policy: Major central banks (U.S., UK, EU, Japan) are expected to pause rate hikes this week due to "higher inflation and lower growth" forecasts. The Fed is almost certain to hold rates on Wednesday, with June easing probabilities dropping to 26% from 69%. The Reserve Bank of Australia is the outlier, with a projected 0.25% hike to 4.1%. • Market Performance: • Asia: Japan’s Nikkei dipped 0.8%; Chinese blue chips eased 0.5% despite retail sales topping forecasts. • Currencies: The U.S. Dollar remains a liquidity stronghold. The Euro is near a 7-month low (US$ 1.1445), while the Yen sits near 159.47, approaching intervention territory. • Equities: S&P 500 and Nasdaq futures rose 0.4%, with investor focus shifting to ICT and AI infrastructure developments at the Nvidia GTC conference. • Strategic Outlook: High defense spending and energy shocks have driven double-digit increases in global bond yields (10-year Treasuries at 4.267%). For Sri Lanka, these global shifts highlight the importance of diversification and monitoring external shocks to the apparel and tea export supply chains. _Data based on provisional Monday market opening reports._
📈 Secondary Bond Market Stabilizes Amid Global Volatility
The secondary Government Bond market closed the week broadly steady despite a volatile start triggered by fluctuating global oil prices and Middle Eastern tensions. • Market Sentiment & Yields Yields spiked early in the week as Brent crude approached US$ 120/barrel but retraced as oil prices corrected. Buying interest from banks and institutional investors helped anchor rates. • 2027 Maturities: 01.05.27 traded at 8.40%; 15.09.27 eased to 8.55% after hitting 8.80%. • 2028-2029 Tenors: 15.02.28 eased to 9.10%; 15.09.29 fell to 9.50% from a 9.65% high. • Long End: 15.06.35 maturity dipped to 10.80% from an intraweek high of 11.00%. • Auctions & Liquidity • Treasury Bills: Weighted averages dipped slightly for 91-day (7.61%) and 182-day (7.91%) bills; 364-day held at 8.23%. • Treasury Bonds: Auction on March 12 raised Rs. 87.02 Bn (66.94% of offer) with rates in-line with the secondary market. • Liquidity: System surplus remains high at Rs. 406.78 Bn. • External Sector & Forex • Foreign Holdings: Recorded a net outflow of Rs. 4.50 Bn, bringing total holdings to Rs. 158.67 Bn. • Currency: The USD/LKR spot rate depreciated slightly to close at Rs. 311.15/311.25, compared to the previous week's Rs. 310.80/311.20. _Note: Based on provisional market data for the week ending March 13, 2026._
## 📈 Global Oil Surge Amid Middle East Conflict: Impact on SL Economy
Oil prices are set for further gains as the U.S.-Israeli conflict with Iran enters its third week, triggering the world’s largest supply disruption. With the Strait of Hormuz closed—a chokepoint for 20% of global supply—crude futures have surged over 40% this month to their highest levels since 2022. • Supply & Infrastructure: Global supply is expected to drop by 8 million bpd in March. While UAE’s Fujairah terminal (1% of world demand) has resumed loading, major hubs like Iran’s Kharg Island and Saudi Arabia's Ras Tanura remain highly vulnerable. • Global Response: The IEA is releasing a record 400 million barrels from strategic stockpiles to combat spikes. Diplomatic negotiations have stalled, with both the U.S. and Iran maintaining defiant stances. • Sri Lankan Context: As a net oil importer, Sri Lanka faces significant pressure on foreign exchange reserves and domestic energy costs. Sustained high prices could impact the transportation and manufacturing sectors, potentially thinning trade margins for apparel & textiles and tea exports due to rising logistics costs. The situation remains volatile based on provisional market data, with further price volatility expected at Monday’s market open. ---
📉 CSE Weekly Update: Rs. 348 Bn Wiped Out Amid Mideast Tensions
The Colombo stock market faced a significant downturn this week, driven by global jitters over the Middle East crisis and oil prices surging above US$ 100 per barrel. • Market Performance: The All Share Price Index (ASPI) plummeted by 4.45% (1,009.36 points) to close at 21,692.55. The S&P SL20 followed suit, dropping 4.34% (276.10 points) to 6,084.65. • Wealth Erosion: A total of Rs. 348.6 Bn in market value was wiped out during the week as investor sentiment turned cautious. • Sector Impact: The Capital Goods sector dominated daily turnover at 43%, while the Banking and Food, Beverage & Tobacco sectors collectively contributed 28%. Major negative contributors included COMB, HNB, HAYL, and NTB. • Trading Activity: Friday’s turnover reached Rs. 5.27 Bn, supported by high-net-worth investor participation in MELS, ACL, and AEL. However, market breadth remained negative with 198 counters declining. • Foreign Interest: Foreign investors remained net sellers, recording a net outflow of Rs. 38.3 Mn. The market remains sensitive to geopolitical escalations and their subsequent impact on national energy costs and global equity trends.
Asian Stocks Slide as Iran Conflict Keeps Oil Near $100 📉
The escalation of the war involving Iran, the U.S., and Israel continues to rattle global markets, driving energy costs up and crushing expectations for central bank rate cuts. • Global Market Impact: Asian equities slumped on Friday, with the MSCI Asia-Pacific index on track for a 1.5% weekly decline. Significant losses were recorded in Japan (Nikkei down 1.3%) and tech-heavy South Korea (down 2%). • Energy & Inflation: Brent crude remains volatile near the US$ 100 per barrel threshold (currently US$ 99.85) as threats to the Strait of Hormuz persist. Rising oil prices have spiked inflation fears, leading traders to scale back Federal Reserve rate cut bets from 50 bps down to just 20 bps for the year. • Currency & Safe Havens: The U.S. Dollar has emerged as the primary safe haven, gaining 2% since the conflict began in late February. The Japanese Yen hovers near 160 per dollar, while Gold is set for a 1% weekly drop as investors pivot toward the dollar and higher-yielding Treasury notes. • Sri Lankan Context: For Sri Lanka, sustained oil prices near US$ 100 pose a significant risk to the trade balance and domestic fuel pricing. Additionally, a stronger dollar and "higher-for-longer" global interest rates may pressure the LKR and complicate international debt dynamics.
📉 Oil Prices Dip as US Eases Russian Supply Curbs
Global oil prices retreated on Friday morning following a strategic US intervention to stabilize markets currently volatile due to conflict in the Middle East. • Overall Market Figures: Brent crude futures dropped by 71 cents (-0.71%) to US$ 99.75 per barrel. US West Texas Intermediate (WTI) fell by 88 cents (-0.92%) to US$ 94.85. This follows a massive 9% surge in both benchmarks on Thursday. • Supply Interventions: The US Treasury issued a 30-day license allowing countries to purchase Russian oil and petroleum products currently stranded at sea. Additionally, a massive coordinated release of 400 million barrels from strategic stockpiles (including 172 million from the US) has been announced to curb skyrocketing energy costs. • Geopolitical Risks: Despite the price dip, significant risks remain as the Strait of Hormuz remains a flashpoint. Iranian leadership has threatened to keep the strait shut, and Iraqi oil ports have reportedly halted operations following attacks on tankers. • Impact on Energy & Logistics: For a net importer like Sri Lanka, these global fluctuations directly influence the power & energy sector and transport costs. While the US license provides temporary relief, the regional escalation continues to threaten global supply chain stability and freight premiums.