Market News
View all(72)📉 ASPI Dips Following Early Gains: CSE Daily Market Update
The Colombo Stock Exchange (CSE) experienced a volatile session today, with early morning momentum failing to hold through the close. • Market Performance: The All Share Price Index (ASPI) fell by 26.97 points (-0.12%) to close at 22,351.55. Despite an early surge past the 22,500 mark, the index shifted to negative territory by midday. • Blue Chips: The S&P SL20, representing the market’s top 20 companies, remained largely stable, declining marginally by 0.72 points to end at 6,279.70. • Turnover & Liquidity: Total market turnover stood at a healthy Rs. 4.31 Bn, reflecting active participation across the board. • Investor Participation: • Domestic: Remained the primary driver with Rs. 4.22 Bn in purchases and Rs. 4.20 Bn in sales. • Foreign: Recorded a net foreign outflow of Rs. 22 Mn, with purchases at Rs. 91 Mn against sales of Rs. 113 Mn.
### Global Market Update: Oil Volatility & Dollar Strength Amid Middle East Conflict 📈
Market Sentiment & Equities • Global markets remain anxious due to contradictory signals from the U.S.-Israel-Iran conflict. • Despite the tension, Asian shares saw a reprieve: Japan’s Nikkei rose 2.1% and South Korea’s Kospi jumped 3.2%. • U.S. futures (S&P 500 and Nasdaq) both added 0.4%, while European EUROSTOXX 50 futures slipped 0.3%. Energy & Oil Prices • Brent crude fluctuated, trading 0.2% higher at US$ 87.89/bbl, while U.S. crude held at US$ 83.47/bbl. • Prices briefly softened following reports that the IEA proposed the largest-ever release of strategic oil reserves to counter supply shocks. • Major risks persist regarding the Strait of Hormuz and potential long-term damage to energy infrastructure. Currencies & Safe Havens • The US Dollar remains the primary safe-haven asset; the Greenback gained 0.1% against the Yen (158.25). • Inflation fears have pressured bond markets, with the U.S. 10-year Treasury yield steady at 4.1460%. • Spot Gold rose 0.5% to US$ 5,215.60/oz as investors balance gains against equity market losses. Economic Outlook • Central banks are expected to maintain a hawkish stance (higher interest rates) to combat potential inflationary spikes driven by energy costs. • Investors are awaiting the U.S. February inflation reading due later today for further direction. _Note: Based on international market data as of March 11, 2026._
📈 CSE Rebounds 2.17% as Global Oil Prices Ease
The Colombo stock market staged a sharp recovery yesterday, reversing losses from recent panic selling as global oil prices retreated below US$ 95 per barrel. • Market Performance: The ASPI surged by 2.17% (+474.38 points) to close at 22,378.52, while the S&P SL20 rose 2.47% to 6,280.42. Total turnover reached Rs. 4.48 Bn with 236 million shares traded. • Sector Drivers: Gains were broad-based, led by the banking and capital goods sectors. The capital goods index climbed 2.96%, bolstered by heavy trading in Softlogic Holdings. The food, beverage & tobacco sector followed with a 2.69% increase. • Key Gainers: Top blue-chip contributors included Hatton National Bank (HNB), Sampath Bank (SAMP), Commercial Bank (COMB), John Keells Holdings (JKH), and Dialog Axiata (DIAL). Notable price appreciation was also seen in Softlogic Capital and Renuka Hotels. • Investor Activity: While retail and HNW participation remained steady, foreign investors were net sellers, recording a net outflow of Rs. 155.4 Mn. • Economic Context: The rebound mirrors positive trends in Asian markets following signals of potential de-escalation in Middle East tensions, directly impacting energy cost expectations for the Sri Lankan economy.
Oil Price Slump Triggers Secondary Bond Market Relief Rally 📈
A sharp decline in global oil prices (Brent crude falling below US$ 95) has sparked a significant relief rally in Sri Lanka’s Secondary Government Bond market, easing inflation fears for the energy sector. • Market Performance: Yields compressed across the curve as institutional buying interest surged. Notable trades include the 01.06.33 maturity dropping 10bps to 10.50% and the 15.02.28 maturity trading at 9.10%. • Macroeconomic Buffer: The rally is supported by strong fundamentals, with Gross Official Reserves hitting a six-year high of US$ 7.28 Bn in February. The current account recorded a surplus of US$ 369.7 Mn in January 2026. • Currency & Liquidity: The Sri Lankan Rupee appreciated to Rs. 310.90/311.00 against the USD. Market liquidity remains ample with a net surplus of Rs. 335.36 Bn. • Upcoming Auction: Focus shifts to today’s Rs. 130 Bn T-Bill auction. The offered amount is lower than the maturing volume of Rs. 149.39 Bn, following a heavily undersubscribed auction last week. _Data based on Wealth Trust Securities and CBSL provisional figures._
Global Oil Prices Plunge 6% Amid De-escalation Hopes 📉
Oil prices retreated sharply on Tuesday after hitting three-year highs, as U.S. President Donald Trump predicted a swift end to Middle East tensions, easing fears of prolonged global supply disruptions. • Overall Figures: - Brent crude futures fell 6.6% (US$ 6.51) to US$ 92.45 a barrel. - U.S. WTI crude dropped 6.5% (US$ 6.12) to US$ 88.65 a barrel. - This follows a surge where prices peaked near US$ 120 on Monday. • Market Drivers: - President Trump indicated the conflict involving Iran is "very complete," suggesting a shorter timeframe than initially estimated. - Reports indicate the U.S. is considering easing energy sanctions on Russia and releasing emergency crude stockpiles to stabilize the market. - Despite threats from Iran’s Revolutionary Guards to halt regional exports, prices remained under downward pressure. • Supply Context: - Significant production cuts remain a factor, with Iraq slashing output by 70% and Saudi Arabia beginning trims. - Analysts expect high volatility to continue, with a projected trading range between US$ 75 and US$ 105. • Impact on Sri Lanka: - Lower global oil prices are critical for Sri Lanka’s transportation and manufacturing sectors, directly influencing the national fuel bill and inflation trajectories.
Market Plunge: ASPI Drops 3.5% as Global Oil Spikes 📈
The Colombo Stock Exchange (CSE) faced significant downward pressure on Monday as global oil prices surged above US$ 115 per barrel, triggering panic selling across the board. • Market Indices: The All Share Price Index (ASPI) fell by 3.51% (797.77 points) to close at 21,904.14, its lowest level since December 2025. The S&P SL20 also declined by 3.65%. • Sector Impact: • Banking: The primary laggard, contributing 32% of turnover but losing 3.45% in its sector index. Key declines included Commercial Bank (-4.1%) and Sampath Bank (-3.4%). • Capital Goods: Down 3.82%, heavily impacted by losses in John Keells Holdings (JKH) (-4.3%) and ACL Cables (-3.1%). • Energy: Bucking the trend, Lanka IOC saw price appreciation of Rs. 1.75 as global crude prices rose. • Trading Activity: Market turnover remained healthy at Rs. 5.8 Bn. However, market breadth was overwhelmingly negative with 262 decliners against only 6 gainers. • Investor Sentiment: Selling was largely driven by retail investors reacting to Middle East tensions. Foreign investors remained net sellers with an outflow of Rs. 6.1 Mn, despite CBSL assurances regarding the economy’s resilience to energy shocks.
📉 Pakistan Stock Market Plunges Amid Middle East Tensions
Trade was suspended at the Pakistan Stock Exchange (PSX) after a massive early-morning sell-off triggered by escalating geopolitical instability in the Middle East. • Market Impact: The benchmark index plummeted by 9,780 points during the opening session, settling at 147,715.95 points. • Percentage Change: This represented a sharp 6.21% decrease compared to the previous close. • Trading Halt: PSX authorities enforced a mandatory 45-minute trade suspension after the index breached the 5% circuit breaker threshold. • Economic Context: While specific to Pakistan, such regional volatility often impacts South Asian investor sentiment and creates ripple effects across emerging market portfolios and energy costs.
Global Oil Prices Surge Past US$ 100 Amid Iran Conflict 📈
Global energy markets have been rattled as crude prices eclipsed the US$ 100 threshold for the first time in over three years, driven by escalating conflict in the Middle East. • Market Impact: Brent Crude: Surged 16.5% to US$ 107.97 per barrel. West Texas Intermediate (WTI): Rose 16.9% to US$ 106.22 per barrel. Natural Gas: Increased by 4.6% to US$ 3.33 per 1,000 cubic feet. • Supply Disruptions: The Strait of Hormuz, accounting for roughly 20% of global oil shipments (15 million barrels/day), faces a near-total halt in tanker traffic due to missile and drone threats. Major producers including Iraq, Kuwait, and the UAE have cut production as export capacities are throttled by the conflict. • Economic Implications for Sri Lanka: As a net importer of refined petroleum and crude oil, sustained prices above US$ 100/barrel pose significant risks to Sri Lanka's trade balance and domestic inflation. Rising energy costs typically impact the manufacturing and transportation sectors, potentially increasing the cost of production for key exports like tea and apparel. • Global Outlook: Financial markets remain volatile; S&P 500 and Dow futures are pointing toward a lower opening as investors weigh the impact of higher energy costs on global consumption and inflation.
CSE Ends Week in Red Amid Mideast Tensions 📉
The Colombo stock market concluded a volatile four-day trading week in negative territory, failing to recover from a significant mid-week plunge triggered by regional geopolitical conflict. • Overall Market Performance: The All Share Price Index (ASPI) dropped 4.34% (1,032.15 points) during the week to close at 22,701.91. The S&P SL20 followed suit, declining 4.14% (275.22 points) to finish at 6,360.75. • Sector & Stock Impact: Declines were driven primarily by index-heavyweights in the banking and diversified holdings sectors. Key laggards included JKH, HNB, SAMP, HAYL, and MELS. The capital goods sector dominated daily turnover at 31%, followed by insurance and diversified financials at a combined 29%. • Investor Activity: • Foreign Investors: Recorded a net outflow of Rs. 791.2 million for the week, with yesterday’s net selling reaching Rs. 826 million. • High Net Worth (HNW): Activity remained significant, with off-board transactions accounting for 34.6% (Rs. 1.7 Bn) of total turnover. • Top Turnover: Led by ACL (Rs. 924 Mn), CINS (Rs. 624 Mn), and HVA (Rs. 226 Mn). • Market Breadth: Negative sentiment prevailed as 160 decliners outweighed 80 gainers. Total daily turnover remained robust at over Rs. 5 Bn, despite the bearish trend.
## 📈 Oil Prices Stabilize Despite Strait of Hormuz Risks
Fitch Ratings suggests the effective closure of the Strait of Hormuz following the Iran conflict is likely temporary, mitigating long-term impacts on energy costs and the global economy. • Market Impact & Pricing • Brent oil price forecast remains at US$ 63/bbl for 2026. • Global supply growth (2.4 MMbpd) continues to outpace demand (0.8 MMbpd). • Global inventories reached 8.2 Bn barrels at end-2025, enough to cover a 400-day halt in Strait shipments. • Supply Chain & Logistics • The Strait handles 20 MMbpd, representing 25% of global seaborne oil trade. • Key alternative routes include Saudi Arabia's 5 MMbpd East-West pipeline and UAE’s 1.5 MMbpd bypass to Fujairah. • Major importers China and India receive 50% of the volumes transiting the Strait. • Key Risks for Sri Lanka • While oversupply limits price hikes, any protracted blockage or infrastructure damage would trigger volatility. • As a net oil importer, Sri Lanka remains sensitive to "geopolitical risk premiums" affecting transportation and power generation costs. • Sector Outlook • Stability in global oil prices is a positive signal for Sri Lanka’s manufacturing and logistics sectors, potentially easing inflationary pressure on fuel-dependent industries.
Global Market Turmoil: Oil Surges Amid Middle East Escalation 📈
• Market Overview: Global equity markets faced a severe rout this week as the U.S.-Israel-Iran conflict intensified. The MSCI Asia-Pacific index is on track for its sharpest weekly decline since 2020 (-6.6%), driven by a shift toward cash and safe-haven assets. • Energy & Inflation: Oil prices have seen a massive spike due to supply risks. Brent crude rose to approximately US$ 83 per barrel from US$ 69 just a week ago. For Sri Lanka, sustained upward pressure on energy prices typically threatens headline inflation and increases the cost of imports. • Currency & Rates: The US Dollar recorded its largest weekly gain in 16 months (+1.4%). Expectations for central bank rate cuts have been slashed as investors fear a resurgence in inflation. U.S. 10-year Treasury yields jumped 18 bps this week to 4.14%, tightening global liquidity. • Sector Impact: • Technology: High-growth stocks in Asia tumbled (South Korea's Kospi down -10.5%) as investors booked profits. • Commodities: Gold fell 3.7% weekly to US$ 5,078.88 per ounce, pressured by the stronger dollar and rising bond yields. • Economic Outlook: Analysts warn that direct infrastructure damage to Gulf producers could trigger a global recession. For emerging markets like Sri Lanka, these shifts suggest a challenging environment for debt servicing and foreign exchange stability if global funding conditions continue to tighten.
📈 Secondary Bond Yields Hold Steady Amid Middle East Tensions
The secondary bond market consolidated yesterday with yields remaining broadly stable as investors adopted a cautious stance. Activity levels were moderate, influenced by ongoing geopolitical concerns in the Middle East. • Secondary Bond Market • 15.01.28 maturity traded at 8.95%. • 15.10.29 & 15.12.29 maturities ranged between 9.59%–9.60%. • Long-term yields: 01.06.33 at 10.50% and 15.06.35 between 10.77%–10.795%. • Total transacted volume (Bonds/Bills) for March 4: Rs. 20.40 Bn. • Money Market & Liquidity • Net liquidity surplus: Rs. 336.51 Bn. • CBSL drained Rs. 75.00 Bn via overnight repo auction at a weighted average rate of 7.57%. • Overnight call money and repo rates stood at 7.67% and 7.70%, respectively. • Forex Market • The USD/LKR spot rate closed at Rs. 311.00/311.50, slightly weaker than the previous close of Rs. 310.30/310.60. • Total USD/LKR traded volume for March 4: US$ 96.75 Mn. _Data based on provisional market reports from Wealth Trust Securities and CBSL._