Market News
View all(82)📉 Colombo Stock Market Ends Lower as Indices Retreat
The Colombo Stock Exchange (CSE) experienced a downward trend today, with both benchmark indices closing in the red amid active trading. • Market Performance: The All Share Price Index (ASPI) dropped by 283.49 points (-1.33%) to close at 21,092.24. • Blue-Chip Movement: The S&P SL20 Index, which tracks the most liquid stocks, fell by 91.03 points (-1.52%) to settle at 5,908.96. • Liquidity: Daily market turnover was recorded at Rs. 2.17 billion, reflecting steady participation despite the price declines. Based on provisional end-of-day data for March 30, 2026. ---
Global Oil Surge: Brent Hits Record Highs Amid Middle East Escalation 📈
The global energy market is facing a significant supply shock as conflict in the Middle East expands, directly impacting Sri Lanka’s energy costs and import bill. • Price Movements: Brent crude jumped 2.16% to US$ 115/barrel, marking a record 59% monthly increase. WTI rose 1.87% to US$ 101.50/barrel. • Conflict Expansion: Iranian-aligned Houthi attacks on Israel and strikes on Iranian infrastructure have widened the conflict beyond the Strait of Hormuz into the Red Sea and Bab el-Mandeb chokepoints. • Supply Chain Risk: With the Strait of Hormuz (handling 20% of global oil) effectively closed, over 4.6 million barrels per day of Saudi exports have been diverted. Disruptions to Red Sea terminals like Oman’s Salalah further threaten refined product flows. • Economic Outlook: Despite reports of "indirect talks" between the U.S. and Iran, markets are bracing for a sharp military escalation. _Impact Note:_ For Sri Lanka, this surge in global prices exerts immense pressure on foreign exchange reserves and may necessitate adjustments in domestic fuel and electricity pricing to manage the rising cost of refined petroleum imports. _Data based on provisional market reports._ ---
📈 Global Energy Shock: Asia Stocks Dive as Brent Crude Eyes Record 60% Monthly Rise
A protracted Gulf conflict and the closure of the Strait of Hormuz have triggered a massive sell-off across Asian markets, signaling heightened inflationary risks and potential recessionary pressure for energy-dependent economies like Sri Lanka. • Market Performance: - Japan’s Nikkei slumped 4.7% (down ~14% in March). - South Korea fell 4.2%, while MSCI Asia-Pacific dropped 1.2%. - U.S. and European futures are trading in the red, down between 0.7% and 1.5%. • Energy & Commodities: - Brent Crude surged 3.0% to US$ 115.98/bbl, marking a staggering 60% monthly increase—surpassing the 1990 Gulf War price spike. - Analysts warn prices could hit US$ 150/bbl if supply disruptions continue into June. - Surging costs are reported for fertiliser, shipping fuel, plastics, and pharmaceuticals, directly impacting Sri Lanka’s tea production costs and apparel logistics. • Macro Outlook: - Markets have pivoted from expecting interest rate cuts to anticipating further tightening by the U.S. Federal Reserve. - The U.S. Dollar remains dominant as a "safe haven," with the Yen weakening past 160, putting further pressure on Asian currency stability and import costs. - Global inflation is spiking; EU annual inflation is forecast to leap to 2.7% from 1.9% in just one month.
Secondary Bond Market Yields Steady Amid External Volatility 📈
The Sri Lankan secondary bond market experienced choppy trading last week, driven primarily by Middle Eastern geopolitical tensions and fluctuating Brent crude prices. Despite intra-week swings, yields closed broadly unchanged across the belly and long end of the curve. • Market Drivers & Policy: Sentiment remained cautious as the Central Bank of Sri Lanka held policy rates steady. Yields faced upward pressure following the first T-Bill rate hike in 10 weeks and conflicting international diplomatic reports. • Yield Curve Performance: • Short-term: 2027 maturities traded between 8.57%–8.72%. • Medium-term: 2029 tenors saw activity between 9.65%–10.12%, while 2031 maturities hit highs of 10.37%. • Long-term: 2034/2035 bonds traded in the 10.97%–11.23% range. • Treasury Bill Auction: Rates rose across all tenures for the first time in 10 weeks. The 91-day yield rose to 7.64% (+3 bps), 182-day to 7.95% (+4 bps), and 364-day to 8.32% (+9 bps). The auction was undersubscribed, raising only Rs. 34.94 Bn (43.68% of the Rs. 80 Bn offer). • Foreign Inflows & Liquidity: Government securities saw a net foreign outflow of Rs. 8.68 Bn—the fourth consecutive weekly drop—bringing total foreign holdings down to Rs. 148.60 Bn. Market liquidity remains in a surplus of Rs. 288.31 Bn. • Currency Watch: The LKR depreciated against the US Dollar, closing the week at Rs. 314.70/315.00 compared to the previous week’s Rs. 311.85/312.00. _Data based on weekly market summary from Wealth Trust Securities._
### CSE Weekly Review: ASPI Gains 3.56% Despite Volatile Friday Close 📈
The Colombo Bourse ended the week on a positive note overall, despite a late-session dip on Friday driven by global geopolitical uncertainty and oil price volatility. • Market Performance (Weekly) The All Share Price Index (ASPI) climbed 3.56% (+736 points) to 21,375.73, while the active S&P SL20 rose 4.3% (+247 points) over the five-day period. • Daily Close (Friday) Indices retreated slightly as the ASPI dropped 0.21% and the S&P SL20 fell 0.59%. Market turnover reached Rs. 2.7 Bn with 145.5 Mn shares traded. • Sector Highlights Consumer Durables & Apparel dominated market activity, contributing 22% to total turnover. The Capital Goods and Materials sectors followed, jointly accounting for 30% of the day's volume. • Investor Activity Foreign Investors were net sellers with a significant weekly net outflow of over Rs. 1.2 Bn. High net worth interest was concentrated in CIC Holdings and Hatton National Bank, while retail interest focused on Industrial Asphalts and Co-Operative Insurance. • Key Laggards Price losses in Banking (HNB, Commercial Bank) and Conglomerates (Melstacorp, JKH) weighed on the final daily performance.
📈 Global Oil Prices Rise Amid Ongoing Volatility
Oil prices edged up on Friday but are set for their first weekly decline since early February. While a temporary pause in attacks on Iran’s energy plants provided slight relief, the market remains under intense pressure due to the ongoing conflict. • Market Prices: Brent crude rose 1.73% to US$ 109.88/bbl, while WTI increased 1.66% to US$ 96.05/bbl. Despite the daily gain, weekly prices are down roughly 2.1%–2.3%. • Supply Impact: The month-old war has removed approximately 11 million barrels per day from global supply. The IEA has categorized this crisis as more severe than both 1970s oil shocks combined. • Historical Context: Since the conflict began in late February, Brent has surged 52% and WTI 43%, significantly impacting global energy costs and import-dependent economies like Sri Lanka. • Economic Outlook: While the pause in energy plant strikes offers a marginal cooling, investors remain cautious regarding a formal ceasefire. High energy costs continue to pose a risk to the transportation and manufacturing sectors.
### 📈 Secondary Bond Yields Edge Up Amid Global Oil Pressure
The secondary bond market saw yields rise yesterday, driven by bearish sentiment following a rebound in global oil prices. While participation remained subdued, several block transactions maintained healthy trading volumes. • Bond Market Highlights Yields across key maturities trended upward as Brent crude climbed back above US$ 104 per barrel. 2028 Maturities: Traded between 9.55% and 9.70%. 2029 Maturities: Saw rates ranging from 9.78% to 10.00%. Long-term (2032-2033): Yields reached between 10.68% and 11.00%. Total Transacted Volume (25 March): Rs. 37.60 Bn. • Liquidity & Money Market The market maintained a net liquidity surplus of Rs. 247.29 Bn. The Central Bank drained Rs. 100 Bn via overnight repo at a 7.61% weighted average. Overnight call money and repo rates stood at 7.60% and 7.64% respectively. • Forex Market The Sri Lankan Rupee (LKR) weakened slightly against the US Dollar. Spot USD/LKR: Closed at Rs. 314.30/314.70 (vs. previous Rs. 313.80/314.50). Daily Traded Volume: US$ 39.60 Mn. _Data based on provisional market reports from Wealth Trust Securities and CBSL._
📉 CSE Slumps 2% as Mideast Tensions Drive Oil Prices Higher
The Colombo stock market snapped a two-day rally yesterday, with Rs. 173 Bn in market value wiped out as global oil prices climbed to US$ 104 per barrel amid escalating Middle East instability. • Market Indices: The All Share Price Index (ASPI) fell by 2.05% (448.91 points) to 21,419.94, while the S&P SL20 dropped 1.61% to 6,035.52. • Trading Volume: Daily turnover stood at Rs. 3.3 Bn, a 36.6% decline compared to the monthly average, with 175.3 million shares traded. • Investor Sentiment: Foreigners were net sellers with an outflow of Rs. 4.1 Mn. Participation from high-net-worth and retail investors remained average as profit-taking set in. • Sector Impact: The Materials sector led turnover (25%), followed by Capital Goods and Banking (27% combined). Top negative contributors included HNB, MELS, COMB, CTHR, and JKH. • Context: The decline follows a record-breaking two-session recovery where the market regained 48% of losses incurred since the start of the conflict. Uncertainty surrounding US–Iran negotiations remains a key pressure point for the financial and energy-sensitive sectors.
Gold Prices Steady at US$ 4,503 Amid Mideast Tensions 📈
• Market Status: Spot gold held steady at US$ 4,503.29 per ounce as investors weigh a U.S. 15-point ceasefire proposal against threats of further military escalation. • Economic Context: Safe-haven demand remains cautious. While crude oil surged above US$ 100 a barrel due to the closure of the Strait of Hormuz, rising inflationary pressure is being offset by high interest rates. • Interest Rate Outlook: Markets have pivoted significantly, now pricing in zero rate cuts from the Federal Reserve for 2026, a shift from previous expectations of at least two cuts. • Impact on Sri Lanka: As a net importer of oil and a country sensitive to global gold prices and USD interest rates, the halt in Fed easing and high energy costs may pressure the external sector and cost of living. • Other Precious Metals: - Silver: Down 0.1% to US$ 71.19 - Platinum: Down 0.7% to US$ 1,906.90 - Palladium: Down 1.4% to US$ 1,404 _Data based on Reuters reports as of March 26, 2026._
📈 Global Markets Rally as Oil Prices Dip on Peace Prospects
World stock markets surged yesterday following reports of a US-led 15-point peace framework for Iran, sparking hopes for a Middle East ceasefire. The easing of geopolitical tensions led to a notable shift in global indices and commodity prices. • Global Equity Performance: Japan’s Nikkei led Asian gains, closing up 2.9%, while Hong Kong’s Hang Seng rose over 1%. European markets showed strong momentum with Germany’s Dax up 1.4%, France’s Cac 40 climbing 1.2%, and London’s FTSE 100 gaining over 1%. US indices remained bullish at the open, with the Dow Jones, Nasdaq, and S&P 500 all trading approximately 1.1% higher. • Commodities and Safe Havens: Oil prices dipped as supply disruption fears eased due to potential diplomacy. Gold, which hit a historic high of over US$ 5,000/oz in January, has seen its rally stall. The metal has fallen by approximately 13% to roughly US$ 4,550/oz, challenging its traditional status as a primary "safe haven" asset during conflict. • Economic Context: The cooling of energy prices and market stabilization provides a favorable backdrop for import-reliant economies like Sri Lanka, particularly concerning energy costs and global trade sentiment.
📈 CSE Marks Record Rebound as Market Recoups 48% of Conflict Losses
The Sri Lankan stock market extended its recovery for a second consecutive session, setting a new benchmark for single-day point gains. The surge follows easing global oil prices and optimism regarding diplomatic negotiations in the Middle East. • Overall Market Performance The ASPI surged by 3.79% (+797.62 points) to close at 21,868.85, while the S&P SL20 rose 3.81% (+225 points) to 6,134.23. Total market turnover reached Rs. 6.4 Bn with 299.5 million shares traded. • Value Recovery The market gained Rs. 284.1 Bn in value yesterday, bringing the two-day total gain to Rs. 528 Bn. This recoups 48% of the Rs. 1.1 Tn value lost since the onset of the Middle East conflict on Feb 28. • Sector Highlights Food, Beverage & Tobacco: Led turnover (22% share) with the sector index rising 4.20%, driven by Lanka Milk Foods and Melstacorp. Capital Goods & Materials: Contributed a combined 34% to turnover. The Capital Goods sector rose 4.28%, led by Colombo Dockyard. Banking: Commercial Bank and Hatton National Bank were principal contributors to the upward momentum. • Investor Activity High net worth and retail participation remained above average. While domestic sentiment was strongly positive (265 green vs. 16 red counters), foreign investors remained net sellers with a net outflow of Rs. 525 Mn.
Global Markets Rally as Mideast Ceasefire Hopes Soften Oil Prices 📈
• Market Sentiment: Global equities surged on Wednesday following reports of a U.S. 15-point ceasefire proposal for the conflict with Iran. S&P 500 futures rose 0.9%, while Asian markets in Japan and South Korea gained approximately 2%. • Energy & Commodities: Brent crude futures dropped 6% to US$ 98.30 per barrel, offering slight relief to energy-dependent economies like Sri Lanka. However, prices remain 35% higher since the conflict began, maintaining pressure on Asian buyers of diesel and jet fuel. • Interest Rates & Inflation: Despite the temporary market bounce, central banks in Europe and Australia are still expected to hike rates to combat war-driven inflation. U.S. 10-year Treasury yields eased to 4.34% as investors reacted to the diplomatic headlines. • Currency & Credit: The U.S. Dollar weakened slightly, trading at 158.8 Yen. Concerns are emerging in credit markets, with major asset managers like Ares Management capping withdrawals in private debt funds due to rising financial stress. • Geopolitical Context: While the U.S. seeks a month-long truce, the situation remains "fragile" as military strikes continue and the U.S. prepares to deploy thousands of additional troops to the region.