Market News
View all(61)📈 CSE Ends Marginally Higher as ASPI Gains 29.77 Points
The Colombo Stock Exchange (CSE) concluded Thursday's trading session in positive territory, with both benchmark indices securing modest gains. • Market Indices & Performance: The All Share Price Index (ASPI) rose by 29.77 points to close at 21,447.57. The S&P SL20 Index gained 16.37 points to finish the day at 6,004.99. • Turnover & Key Value Drivers: Total market turnover for the session amounted to Rs. 1.48 billion. E.B. Creasy & Company PLC was the top contributor, generating Rs. 410 million in traded value, which included a crossing worth Rs. 260 million. ACL Cables PLC (industrial/manufacturing sector) was the only other entity to surpass the Rs. 100 million turnover mark, recording transactions totaling Rs. 114 million.
📉 T-Bill Rates Drop Across the Board; Rs. 120 Bn Fully Raised
Sri Lanka's weekly Treasury bill auction saw yields decline across all tenors for the first time in five weeks, fully securing its targeted capital. However, external geopolitical pressures marginally nudged secondary bond yields upward. • Auction Performance & Yields: The full Rs. 120 billion offered was successfully raised during the first phase. - 91-day tenor: Decreased by 8 basis points to 10.13% - 182-day tenor: Decreased by 3 basis points to 10.27% - 364-day tenor: Decreased by 1 basis point to 10.20% • Secondary Bond Market: Yields edged marginally higher, driven by cautious market sentiment following escalating Middle East geopolitical tensions and rising global oil prices. Notable trades included the 2030 maturities trading between 11.33% and 11.60%, while the long-term 2037 maturity traded at 12.65%. • Money Market Liquidity: The net liquidity surplus stood at Rs. 147.19 billion. The Central Bank of Sri Lanka (CBSL) absorbed excess liquidity by taking Rs. 87.19 billion through its Standing Deposit Facility Rate (SDFR) at 8.25%, alongside draining Rs. 60 billion via overnight and 7-day term repo auctions. Weighted average rates for overnight call money and repos stood at 8.95% and 9.00% respectively. • Forex Market: The USD/LKR spot contract closed unchanged at Rs. 336.30/336.40. The total market volume traded reached US$ 87.35 million.
📉 CSE Ends in Red Amid Heavy Foreign Selling
The Colombo Stock Exchange extended its bearish run for the third consecutive day, closing lower due to profit-taking and significant foreign outflows amid ongoing geopolitical uncertainty. • Overall Market Figures All Share Price Index (ASPI): Down 0.03% (-7.19 points) to close at 21,417.80. S&P SL20 Index: Down 0.14% (-8.38 points) to close at 5,988.62. Market Turnover: Recorded at Rs. 1.22 Bn with over 56.93 Mn shares traded. Foreign Participation: Net sellers with a heavy net outflow of Rs. 36.7 Mn. High-net-worth (HNW) investor participation remained low, while retail interest was average. • Sector & Stock Breakdown Banking Sector: Led daily turnover with a 27% share, though the sector index lost 0.31%. Main negative ASPI contributors included DIAL, HNB, CFIN, COMB, and BUKI. Sampath Bank closed flat at Rs. 137. Materials Sector: Contributed heavily to turnover, with the sector index rising 0.71%. Haycarb gained Rs. 8.50 to close at Rs. 175.75, and Chevron Lubricants appreciated by 25 cents to Rs. 198.25. Capital Goods: Along with Materials, collectively contributed 37% to turnover. John Keells Holdings rose 10 cents to Rs. 19.90, and Hayleys gained 50 cents to close at Rs. 230.50.
Globally Easing Inflation Sparks Asian Stock Rally as China Growth Slows 📈
A surprise drop in U.S. inflation has sparked a rally across volatile Asian stock markets, easing global interest rate hike fears, even as China’s economic growth slowed to 4.3% in Q2 due to weak domestic demand. • Market Movements: South Korea’s KOSPI index surged 7% ahead of key semiconductor earnings, Japan’s Nikkei rose 1%, and MSCI’s broadest Asia-Pacific index gained 2.4%. • U.S. Inflation Drop: June headline CPI fell 0.4%—its first drop since the pandemic. Annualised core inflation came in at 2.6% (below the expected 2.8%), slashing expectations of a July U.S. rate hike to just 16%. • China Growth Miss: China’s annual growth slowed to 4.3% in Q2, missing analyst expectations due to weak domestic demand and Middle East oil shocks, though June retail sales rebounded. • Oil & Currency Markets: Brent crude steadied at US$ 85.80/barrel after a 13% weekly surge, as geopolitical tensions remained high despite the U.S. scrapping proposed shipping fees through the Strait of Hormuz. The U.S. Dollar weakened, while the Chinese Yuan rose to a one-month high of 6.7635.
📈 Sri Lanka Secondary Bond Market Activity Picks Up Amid T-Bill Auction Focus
The secondary bond market saw a resurgence in activity as yields compressed from morning opening quotes, driven by steady institutional buying interest following the recent Treasury Bond auction outcomes. • Bond Yields Adjust: Yields adjusted downward on steady demand. The 01.08.30 and 15.10.30 maturities traded down to 11.50% and 11.57% respectively. Longer-tenor maturities like 15.10.34 and 01.07.37 traded down to 12.00% and 12.58% respectively. • Rs. 120 Bn T-Bill Auction: Today's scheduled Treasury Bill auction will offer Rs. 120 Bn (comprising Rs. 55 Bn on 91-day, Rs. 35 Bn on 182-day, and Rs. 30 Bn on 364-day maturities). This is slightly below the estimated maturing volume of Rs. 147.72 Bn. At last week’s auction, yields held steady with the 91-day rate at 10.21% and 182-day rate at 10.30%. • Money Market Liquidity: Net liquidity surplus was recorded at Rs. 151.99 Bn. The Central Bank absorbed Rs. 101.99 Bn via the Standing Deposit Facility (SDF) at 8.25%, and Rs. 50 Bn via an overnight Repo auction at a weighted average rate of 8.69%. Weighted average overnight call money and Repo rates stood at 8.96% and 9.00%. • Rupee Slips Marginally: In the forex market, the USD/LKR spot contracts closed slightly weaker at Rs. 336.30/336.40 compared to the previous close of Rs. 336.00/336.25. The total USD/LKR traded volume stood at US$ 45 Mn on 13 July.
📉 CSE Slides to 3-Month Low Amid Middle East Tensions
The Colombo stock market extended its losses for a second consecutive session, dipping to its second lowest point in three months as escalating Middle East tensions and rising global oil prices heavily weighed on investor confidence. • Market Performance: The ASPI dropped 0.50% (107.39 points) to close at 21,424.99, while the active S&P SL20 index declined by 0.37% (22.04 points) to end at 6,000.15. • Turnover & Volume: Daily market turnover reached nearly Rs. 1.1 Bn, with over 48.6 million shares changing hands. High-net-worth participation remained limited, while retail activity stayed at average levels. • Foreign Activity: Foreign investors continued to pull out of the market, recording a net foreign outflow of Rs. 126.9 Mn. • Sector Contributions: The banking sector led the market turnover with a 20% share. This was closely followed by the food, beverage & tobacco and materials sectors, which collectively contributed 28% to the daily turnover. • Key Stock Draggers: The primary negative contributors dragdown down the ASPI were Lion Brewery (LION), Melstacorp (MELS), Vallibel One (VONE), John Keells Holdings (JKH), and Carson Cumberbatch (CARS). • Top Turnover Drivers: Lanka IOC (LIOC) topped the turnover chart with Rs. 109 Mn, followed by Ceylon Cold Stores (CCS) at Rs. 96 Mn, and Dipped Products (DPL) at Rs. 82 Mn.
🛢️ Global Oil Climbs to 4-Week High Amid Strait of Hormuz Escalation
• Price Surge: Brent crude futures rose 2% (up $1.68) to US$ 84.98 per barrel, following a massive 9.6% surge in the previous session. U.S. West Texas Intermediate (WTI) crude increased by 2.1% (up $1.65) to US$ 79.79 a barrel. Prices are now at their highest level since June 17, 2026. • Geopolitical Triggers: The price spike follows the U.S. reinstating its naval blockade of Iran and intensifying military strikes. Concurrently, Iran launched cruise missile attacks on two UAE tankers in the Strait of Hormuz, resulting in crew casualties, while Yemen's Houthi movement targeted Saudi Arabia. • Impact on Sri Lanka: While this is a global development, rising crude prices directly pressure Sri Lanka's economy by driving up the national import bill for petroleum products. Higher energy costs historically impact production and transport costs for key domestic sectors like apparel & textiles and tea logistics, threatening inflation and putting pressure on foreign exchange reserves. • Market Outlook: Analysts note that while the Strait of Hormuz remains partially open, the competing military objectives have injected severe uncertainty into global energy supply chains, with further risks if regional attacks spread to Red Sea shipping lanes.
📈 Treasury Bond Auction Raises Rs. 150 Bn; Money Market Liquidity Surges
Sri Lanka’s central bank successfully raised the full Rs. 150 billion offered amount during the first phase of yesterday's Treasury Bond auction. • Auction Performance: Total demand was strong with a bid-to-acceptance ratio of 2.42 times. Weighted average yields across all tenors landed slightly above pre-auction secondary market quotes: • 2030 Maturity (15.10.2030): Issued at 11.57% (vs. secondary market's 11.47%–11.50%). • 2034 New Maturity (15.10.2034): Issued at 12.04% (vs. similar 15.06.2034 rate of 11.80%–11.90%). • 2037 Maturity (01.07.2037): Issued at 12.58% (vs. comparable 15.08.36 rate of 11.80%–12.00%). • Secondary Market: Trading remained exceptionally quiet and at a virtual standstill as market participants maintained a cautious, watchful stance surrounding the auction. • Money Market Liquidity: Net liquidity surplus jumped significantly to Rs. 152.35 billion (up from Rs. 116.72 billion previously). Commercial banks deposited Rs. 131.43 billion at the Central Bank's 8.25% SDFR, while the Domestic Operations Department drained Rs. 21 billion via an overnight repo auction at 8.74%. • Forex & Rupee: The Sri Lankan Rupee dipped marginally against the US Dollar. Spot contracts closed lower at LKR 336.00/336.25 compared to the previous close of LKR 335.70/335.85. Total USD/LKR traded volume stood at US$ 98.65 million. _Note: A direct issuance window is open for an additional 10% of the offered amount until 3:00 PM today (14 July). Data based on Wealth Trust Securities report._
📈 Global Stocks Slide as Gulf Tensions Trigger 4%+ Oil Surge
Global markets fell sharply on Monday as escalating conflict in the Gulf and Iran’s claimed closure of the Strait of Hormuz fueled a surge in energy prices, renewing global inflation concerns. • Energy Markets Spike: Brent crude surged 4.3% to US$ 79.31 a barrel, while US WTI climbed 4.4% to US$ 74.62. This rapid rise directly impacts energy-dependent economies like Sri Lanka, increasing global trade and import cost pressures. • Asian Equities Tumble: South Korea's KOSPI plunged 7.6%, extending steep losses in tech and semiconductor stocks. Japan’s Nikkei fell 2.2%, while the broader MSCI Asia Pacific index outside Japan dropped 1.8%. • US & European Outlook: US futures pointed lower (Nasdaq futures down 1.3%, S&P 500 futures down 0.6%). European markets are also set for weaker openings, with the Euro under pressure due to Europe's heavy reliance on imported energy. • Bonds & Currencies: Higher oil prices pushed US Treasury yields higher as investors dialed back expectations for Federal Reserve policy easing. The US Dollar index remained firm at 101.13, while investors shifted toward safe-haven assets. _Context_: For Sri Lanka's economy, global market volatility and rising oil costs historically exert pressure on import bills and foreign reserves, despite ongoing national efforts in industrial diversification.
📉 CSE Plummets 1.07% Amid Middle East Conflict Concerns
The Colombo stock market opened the week sharply lower on broad-based selling pressure driven by escalating geopolitical tensions in the Middle East. Overall Market Figures • ASPI dropped 1.07% (-233.18 points) to close at 21,532.38. • S&P SL20 fell 0.91% (-55.27 points) to end at 6,022.19. • Losers significantly outnumbered gainers by 178 to 41. • Daily market turnover reached over Rs. 1 Bn with 79.7 Mn shares traded. • Foreign sentiment remained negative, recording a net outflow of nearly Rs. 56 Mn. High net worth (HNW) participation was low, while retail interest was above average. Sector Performance & Key Decliners • Banking Sector: Led market turnover with a 27% share but the sector index lost 0.70%. Major decliners pushing the ASPI down included SAMP (down Rs. 1.50 to Rs. 137.25), HNB non-voting (down Rs. 7.75 to Rs. 320), and COMB (down Rs. 2.25 to Rs. 203). • Food, Beverage & Tobacco: Contributed heavily to turnover but dropped 0.64% as a sector, heavily weighed down by MELS (down Rs. 2.25 to Rs. 183.25). • Capital Goods: Along with Food & Beverage, collectively captured 32% of the daily turnover. Top Index Contributors • Main laggards: CTHR, COMB, SAMP, MELS, and HNB. • Positive cushions: BUKI, RICH, BREW, SEMB, and CDB.
📈 Asian Stocks Surge on AI Momentum Despite Middle East Escalation
Asian stock markets rose sharply on Friday, driven by tech and semiconductor firms as investors prioritized the artificial intelligence boom over intensifying U.S.-Iran conflict risks in the Middle East. • Market Performance: - South Korea's KOSPI led the region, jumping 4% to become the world’s best-performing major market since 2025. - Japan’s Nikkei climbed 1.8%, while the MSCI's broadest index of Asia-Pacific shares (ex-Japan) rose 1.3%. Taiwan markets remained closed due to a typhoon. • Tech & Semiconductor Drivers: - Momentum was fueled by Micron Technology’s plan to invest over US$ 250 Bn in the U.S. through 2035. - South Korean chip majors Samsung Electronics rose 3% and SK Hynix gained 1%. SK Hynix is set for a massive US$ 26.5 Bn U.S. ADR debut, marking the world's second-biggest share sale. Its domestic shares have surged 238% this year. • Commodities & Currencies: - Brent crude futures hovered at US$ 76.03 per barrel, heading for a 5% week-on-week gain due to threats to the Strait of Hormuz supply route. - The Japanese yen strengthened 0.5% to 161.51 per U.S. dollar, rebounding from 40-year lows following government hints to encourage domestic asset holdings via pension funds. Gold fell 1% for the week to US$ 4,113 per ounce.
📈 Asian Shares Rise on Chip Rally Amid Surging Oil Prices
Global market dynamics shifted on Thursday as semiconductor stocks rebounded, countering inflation fears driven by escalating tensions in the Gulf. Market Performance & Sectors • Asia-Pacific Markets: MSCI’s broadest index outside Japan rose 0.8%. Japan's Nikkei climbed 2.3%, breaking a three-day losing streak, while South Korea’s KOSPI jumped 3.8%. • Tech Rebound: The global tech sector got a boost as Samsung rose 3.6%, SK Hynix surged 7.5%, and Nvidia rallied 3.6% following reports that China will allow limited purchases of H200 AI chips. Commodities & Macroeconomic Impact • Oil Surge: Brent crude futures rose 0.8% to US$ 78.65 a barrel—up 9% this week—briefly crossing US$ 80.00 for the first time since June 22. This followed fresh US military strikes in Iran and the termination of the interim Gulf peace agreement. • Bonds & Interest Rates: Spurring global inflation fears, the oil surge triggered a bond sell-off. US 10-year Treasury yields climbed to 4.5852%, while market bets increased for Federal Reserve interest rate tightening by 38 basis points this year. • Currencies & Gold: The US dollar dipped 0.2% to 162.38 yen, remaining near 40-year peaks. The Euro rose 0.1% to US$ 1.1428, while Gold remained flat at US$ 4,079 per ounce. _Note: Summarized based on international market data available on July 9, 2026. High oil prices historically impact Sri Lanka's import bills and energy costs._