Market News
View all(78)📈 CSE Rebounds: ASPI Gains 222 Points After 5-Day Slump
The Colombo stock market staged a recovery today (March 18), breaking a five-session losing streak as investor sentiment improved. • Market Performance: The All Share Price Index (ASPI) climbed by 222.54 points to close at 20,640.63. • Blue-chip Movement: The S&P SL20 Index, representing the market's most liquid stocks, saw a marginal gain, ending the session at 4,058. • Liquidity: Market turnover reached Rs. 5.27 billion, reflecting active participation during the rebound. The recovery provides a much-needed breather for the capital markets and financial services sector following a week of heavy sell-offs.
📈 Asian Markets Rally as Oil Prices Eases Amid Middle East Tensions
Global markets showed resilience on Wednesday as oil prices retreated slightly, providing a temporary breather for Asian equities despite ongoing geopolitical volatility. • Market Performance: MSCI Asia-Pacific index rose 1.2%, while Japan's Nikkei rallied 2%. Chinese blue-chips inched up 0.1% and Hong Kong's Hang Seng gained 0.3%. • Energy Sector: Brent crude dropped 1% to US$ 102.28 per barrel, and WTI fell 1.6%. Despite the dip, the Strait of Hormuz remains largely shut, keeping supply risks high. Analysts warn prices may reprice higher if the blockade persists. • Global Policy Focus: All eyes are on the U.S. Federal Reserve meeting today. Markets are weighing whether the oil shock will lead to stickier inflation, potentially shifting the "dot plot" to project zero rate cuts for 2026. • Currency & Yields: The U.S. Dollar weakened slightly, with the Euro at $1.1539. The Japanese Yen steadied at 159 per dollar, avoiding the critical 160 intervention level. 10-year Treasury yields remained flat at 4.20%.
Oil Prices Ease as Iraq Exports Resume Amid Middle East Tensions 📉
• Market Impact: Global oil prices edged lower on Wednesday, paring back previous sharp gains. Brent crude futures fell 0.65% to US$ 102.75 per barrel, while U.S. WTI dropped 1.23% to US$ 95.03 per barrel. • Supply Relief: The Iraqi government and Kurdish authorities reached a deal to resume exports via Turkey’s Ceyhan port. Flows are expected to start at 100,000 bpd; however, analysts note this remains a minor fraction of the 2 Mn bpd Iraq has lost during the ongoing conflict. • Geopolitical Risks: Despite the export deal, Brent remains above US$ 100 as the conflict with Iran shows no signs of de-escalation. Total production from Iraq’s southern fields has plunged 70% to 1.3 Mn bpd due to the closure of the Strait of Hormuz, a vital chokepoint for 20% of global supply. • Regional Volatility: Tensions spiked following the death of Iran’s security chief in an Israeli attack and subsequent U.S. military strikes on Iranian coastal missile sites. Iran has reportedly rejected all de-escalation offers from intermediaries. • Inventory Data: U.S. crude stocks rose by 6.56 Mn barrels for the week ended March 13 (API data), significantly higher than the 380,000-barrel increase anticipated by analysts, providing further downward pressure on prices.
📉 CSE Slump Continues: Rs. 1.1 Trillion Wiped Since Middle East Conflict
The Colombo Stock Exchange (CSE) failed to hold early gains yesterday as panic selling intensified, driven by regional instability and domestic economic concerns. • Market Performance: The All Share Price Index (ASPI) fell by 2.49% (521.17 points) to 20,418.09. The S&P SL20 dropped 2.11% to 5,760.99. • Value Erosion: Since the Middle East conflict began on Feb 28, the market has lost over Rs. 1.1 trillion in value. • Investor Sentiment: Panic selling among retail investors was triggered by margin call fears, fuel shortages, and potential power cuts. 227 counters declined, while only 34 gained. • Sector Activity: The Capital Goods sector led turnover (32%), followed by Banking and Diversified Financials (25%). Key decliners included COMB, HAYL, DOCK, NDB, and AEL. • Foreign Interest: Foreign investors remained net sellers with an outflow of Rs. 104.7 million yesterday, bringing the total year-to-date net foreign outflow to Rs. 17.2 billion. • Liquidity: Daily turnover stood at over Rs. 5 billion with 274 million shares traded, though High Net Worth (HNW) participation remained subdued.
📉 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._