Market News
View all(62)📈 US-Iran Conflict Triggers Global Market Volatility & Oil Price Surge
The escalation of conflict between the US, Israel, and Iran on March 1, 2026, has immediately impacted global energy and financial markets, with significant implications for oil-dependent economies like Sri Lanka. • Energy & Oil Markets • Brent crude is currently trading near $73/bbl, up 20% YTD. • Analysts warn of a spike to $80/bbl in the short term, with potential to hit $100/bbl if a prolonged conflict disrupts the Strait of Hormuz (carrying 20% of global supply). • A sustained $100/bbl price could add 0.6-0.7 percentage points to global inflation. • Currency & Safe Havens • The US Dollar is expected to strengthen against most currencies due to its status as a net energy exporter, potentially increasing pressure on emerging market forex reserves. • Gold has risen 22% in 2026, reaching record highs as investors seek safe havens. • The Swiss Franc and Japanese Yen remain primary hedges against geopolitical instability. • Sector Impacts • Airlines: Significant pressure expected due to regional airspace closures and flight cancellations. • Logistics & Shipping: Major trading houses have already suspended fuel shipments through the Persian Gulf. • Technology: High volatility expected, following an existing 15% rise in US bond volatility this year. • Regional Markets • Gulf equities (Saudi Arabia, Dubai) are projected to drop between 3-5% if hostilities persist, impacting global investment sentiment.
📉 CSE Wraps Up February in Red Despite Healthy Turnover
The Colombo Stock Exchange (CSE) concluded February on a negative note as benchmark indices faced selling pressure, particularly across blue-chip and banking counters. • Market Performance: The ASPI fell by 47 points (0.2%), while the S&P SL20 dropped 74 points (over 1%). For the full month of February, the ASPI and S&P SL20 lost 0.3% and 0.1% respectively. • Liquidity & Turnover: Daily turnover remained strong at Rs. 7.0 Bn, with a monthly average daily turnover of Rs. 5.62 Bn. High Net Worth (HNW) participation was robust, with crossings accounting for 19.4% (Rs. 1.3 Bn) of the day’s total. • Sector Highlights: • Food, Beverage & Tobacco: Led turnover (27% share), boosted by Renuka Agri Foods. The sector index rose 0.75%. • Diversified Financials & Banking: Collectively contributed 42% to turnover. Softlogic Finance (+11%) and LOLC Holdings (+Rs. 6.50) saw gains, while the banking sector faced pressure. • Top Laggards: Heavyweights including Commercial Bank (down 3.17%), John Keells Holdings (JKH), HNB, CTC, and LLUB were key negative contributors. • Investor Sentiment: Foreign investors turned net sellers with an outflow of Rs. 363.8 Mn. While HNW interest centered on Renuka Agri Foods and Softlogic Finance, retail activity focused on Browns Investments and Co-Operative Insurance. Based on provisional daily market data.
CSE Turnover Surges Past Rs. 7 Bn as Indices Retreat 📈
The Colombo Stock Exchange experienced a sharp decline on Friday (27), despite a massive spike in trading activity that saw turnover cross a significant milestone. • Market Indices: The All Share Price Index (ASPI) dropped by 47.17 points to 23,734.06, while the S&P SL20 (large-cap index) fell 74.20 points to 6,635.97, indicating pressure on blue-chip stocks. • Turnover & Volume: Market turnover reached a robust Rs. 7.01 Billion. A major driver of this liquidity was Renuka Agri Foods PLC, which alone contributed Rs. 1.14 billion in on-board trades, highlighting activity in the food & beverage sector. • Investor Participation: Domestic: Local buying reached Rs. 6.84 Bn, while selling stood at Rs. 6.48 Bn, showing high internal liquidity. Foreign: Recorded a net outflow, with purchases of Rs. 164 Mn against sales of Rs. 528 Mn. • Summary: Despite the high turnover, the session reflected broad-based weakness as indices closed in the red, largely influenced by net foreign selling and a decline in large-cap counters.
📈 Rs. 140 Bn Bond Auction Sees Yields Fall Amid Record Liquidity
Sri Lanka’s secondary bond market rallied strongly following a highly successful auction by the Public Debt Management Office, which raised the full Rs. 140 billion offered across three maturities. The auction reflected a "bullish" trend driven by a 22-year high in market liquidity. • Auction Outcomes & Yields • 2030 Maturity: Issued at a weighted average yield of 9.50% (fully subscribed). • 2034 Maturity: Issued at a weighted average yield of 10.70% (fully subscribed). • 2037 Maturity: Issued at a weighted average yield of 10.88% (fully subscribed). • Demand: Strong investor appetite with a bid-to-acceptance ratio of 2.79 times. • Market Liquidity & Rates • Net liquidity surplus hit a massive Rs. 341.02 Bn, surpassing the previous day's 22-year record. • Overnight call money and repo rates remained stable at 7.69% and 7.71% respectively. • Aggressive buying in the secondary market pushed rates lower across multiple tenors, including the 2027, 2029, and 2032 maturities. • Currency & Trade Volume • USD/LKR: The Rupee remained steady, closing at Rs. 309.29/309.32 against the US Dollar. • Forex Volume: Total USD/LKR traded volume stood at US$ 123.65 Mn. • Secondary Market: Total transacted volume for bonds/bills reached Rs. 26.43 Bn. Context: Falling yields and high liquidity suggest a favorable environment for government borrowing and potential easing in the broader financial services sector.
CSE Closes in Green as Blue-Chips Drive Momentum 📈
The Colombo Stock Exchange (CSE) ended on a positive note yesterday, as strong buying interest in heavyweights outweighed selling pressure in the banking sector. • Market Performance: The All Share Price Index (ASPI) gained 0.33% (+78.13 points) to close at 23,781.23. The S&P SL20 rose 0.37% (+24.90 points) to end at 6,710.17. • Trading Activity: Daily turnover surpassed Rs. 4.9 Bn with 195.9 million shares traded. The Capital Goods sector was the primary driver, accounting for 27% of total activity, followed by Banking and Diversified Financials at 25%. • Key Contributors: The upward trend was supported by gains in John Keells Holdings (JKH), Hayleys (HAYL), Melstacorp (MELS), Access Engineering (AEL), and Lanka Milk Foods (LMF). • Sector Highlights & Investor Sentiment: Banking Sector: Faced notable selling pressure as investors reassessed valuations following Q4 earnings releases. Investor Participation: Activity remained steady among retail and High Net Worth (HNW) investors. Foreign Interest: Foreign investors turned net buyers with a net inflow of Rs. 194 Mn.
📈 CSE Gains Momentum: Turnover Hits Rs. 4.91 Billion
The Colombo Stock Exchange (CSE) saw a significant uptick in trading activity on Thursday, with turnover nearing the Rs. 5 billion mark amid improved investor participation. • Market Indices: The All Share Price Index (ASPI) rose by 78.13 points (0.33%) to close at 23,781.23. The S&P SL20 Index, tracking blue-chip performance, increased by 24.90 points to end at 6,710.17, signaling broad-based positive momentum. • Turnover & Volume: Total market turnover reached Rs. 4.91 Bn, reflecting a sharp rise in liquidity compared to recent sessions. • Investor Sentiment: • Domestic Participation: Domestic purchases totaled Rs. 4.66 Bn against sales of Rs. 4.85 Bn. • Foreign Interest: Foreign investors remained net buyers, recording purchases of Rs. 249 Mn against sales of Rs. 55 Mn, resulting in a Net Foreign Inflow for the day. The session highlights a shift toward active engagement in the Equity Market, driven by a mix of retail and institutional interest as the indices continue their upward trajectory.
Sri Lanka Overnight Liquidity Hits 22-Year High 📈
• Money Market: Net liquidity surplus crossed the Rs. 300 Bn mark to reach Rs. 322.93 Bn, the highest level in 22 years. The Central Bank drained Rs. 100 Bn via Repo auctions to manage the excess. • T-Bill Auction: Yields declined for the sixth consecutive week across all maturities. 91-day: 7.63% (-3 bps) 182-day: 7.92% (-7 bps) 364-day: 8.24% (-3 bps) The auction was undersubscribed, raising Rs. 67.88 Bn (75.4% of the Rs. 90 Bn offered). • Bond Market: Secondary market yields consolidated with renewed buying interest. A major Treasury Bond auction of Rs. 140 Bn is scheduled for today (Feb 26) across 2030, 2034, and 2037 maturities. • Forex & Rates: The USD/LKR spot exchange rate closed slightly stronger at 309.33/309.36. Call money and Repo rates averaged 7.69% and 7.71% respectively.
📈 CSE Ends Volatile Session in Green Following Late Rally
The Colombo stock market recovered from a midday dip to close slightly higher yesterday, driven by selective buying interest despite negative overall market breadth. • Market Performance • ASPI: 23,703.10 (+0.05% | +12.48 points) • S&P SL20: 6,685.27 (+0.06% | +4.15 points) • Turnover: Over Rs. 4.0 Bn • Share Volume: 133.1 Mn shares traded • Sector & Stock Highlights • Diversified Financials led turnover (22%), followed by Capital Goods and Banking (combined 35%). • Key gainers included CDB, DIAL, PLR, JKH, and DOCK. • 101 stocks advanced while 127 declined, indicating concentrated gains in specific counters. • Crossings accounted for 16.8% of turnover, led by AEL.N (Rs. 230.2 Mn). • Investor Sentiment • Retail investors were the primary drivers of the session; high-net-worth (HNW) activity remained modest. • Foreign investors were net sellers with an outflow of Rs. 72 Mn. • Year-to-date (YTD) foreign outflow stands at Rs. 15.9 Bn. • Market P/E ratio: 11.17. _Note: Based on provisional market data._
📈 Market Turnover Tops Rs. 4 Bn as Indices Edge Up
Sri Lanka’s equity market recorded a modest gain on Wednesday (Feb 25), supported by steady domestic participation at the Colombo Stock Exchange. • Market Performance The All Share Price Index (ASPI) rose by 12.48 points (+0.05%) to close at 23,703.10. The blue-chip S&P SL20 Index gained 4.15 points (+0.06%) to end at 6,685.27. • Turnover & Participation Total market turnover reached Rs. 4.02 Bn. Trading was heavily dominated by domestic investors, with local purchases and sales totaling Rs. 3.97 Bn and Rs. 3.90 Bn respectively. • Foreign Investor Activity Foreign participation remained subdued, resulting in a net foreign outflow for the session. Foreign Purchases: Rs. 48 Mn Foreign Sales: Rs. 114 Mn _Note: Market turnover was significantly influenced by the banking and diversified financials sectors._
📈 Asia Markets Rally on AI Surge & Global Policy Watch
Regional financial markets climbed on Wednesday as investor confidence in Artificial Intelligence (AI) remains a primary growth driver, while attention shifts to US policy and Japanese monetary shifts. • Market Performance MSCI Asia-Pacific index rose 1.0%, led by a record high for Japan's Nikkei (57,956.92). South Korea’s KOSPI surged 1.7%, crossing the 6,000 mark for the first time, fueled by a 44% year-to-date gain. • Tech & AI Sector Memory chip manufacturers are the biggest beneficiaries of the AI boom. Samsung Electronics and SK Hynix stocks have doubled since October due to global shortages. Sentiment was further bolstered by Anthropic unveiling new business AI tools, reinforcing the ICT sector’s role in global profit growth. • Currency & Macro Outlook Japan: The Yen strengthened to 155.7/US$ amid uncertainty over Bank of Japan rate hikes, following reports of political reservations regarding further tightening. USA: Markets are awaiting President Trump’s State of the Union speech for clarity on trade and fiscal policy. Federal Reserve rate cuts are anticipated to begin in June 2026. Commodities: Crude oil rose approx. 0.75% (Brent at $71.30), while Gold remained flat at $5,138.49/oz. _Note: Market data based on early Wednesday trading sessions._
📈 Secondary Bond Market Gains Interest Amid Major Auctions
The secondary bond market saw a slight uptick in rates yesterday as investors adopted a "wait-and-see" approach ahead of significant upcoming auctions and inflation data. Despite cautious sentiment, healthy transaction volumes were recorded via block trades. • Market Activity & Yields: Renewed buying interest emerged at elevated yield levels. Notable trades included 2028 maturities at 9.15%–9.19% and 2029 maturities between 9.39%–9.54%. Longer-term 2034/35 bonds traded in the 10.75%–10.85% range. • Upcoming Treasury Auctions: - T-Bills: Rs. 90 Bn on offer today (below maturing volume of Rs. 107.56 Bn). - T-Bonds: Rs. 140 Bn auction scheduled for Thursday across 2030, 2034, and 2037 maturities. • Liquidity & Money Market: The system remains in a strong net liquidity surplus of Rs. 297.94 Bn. The Central Bank drained Rs. 60 Bn via overnight repo at 7.63%. • Currency (USD/LKR): The Rupee remained stable, with spot contracts closing at Rs. 309.35/40. Total market volume stood at US$ 98.10 Mn (as of Feb 23). Investors remain focused on the February 2026 CCPI inflation data release due later this week to gauge future interest rate trajectories.
Colombo Stocks Retreat Amid Conglomerate and Bank Sell-Off 📉
The Colombo stock market closed in the red on Tuesday, primarily weighed down by losses in heavyweights within the diversified holdings and banking sectors. • Overall Indices The benchmark ASPI fell by 0.39% (92.40 points) to end at 23,690.62. The S&P SL20 index, which tracks the 20 most liquid stocks, dropped 0.71% (47.59 points) to settle at 6,681.12. • Market Turnover & Foreign Activity Daily turnover stood at approximately Rs. 3.7 Bn, with over 152.5 million shares changing hands. Foreign investors remained net sellers, recording a net outflow of Rs. 729.3 Mn. • Sector Performance Capital Goods: Led turnover contribution (26%), though the sector index shed 0.91%. Key movements included ACL Cables (+Rs. 1.50) and Access Engineering (+Rs. 1.10), while John Keells Holdings (JKH) fell by Rs. 0.50. Telecommunication Services: Second highest contributor to turnover, with the index edging up 0.02%, despite a slight Rs. 0.10 drop in Dialog Axiata. Banks & Diversified Financials: Significant negative pressure came from Melstacorp, Nations Trust Bank, Sampath Bank, and Central Finance. • Investor Sentiment Retail interest was concentrated in Co-Operative Insurance, Browns Investments, and HVA Foods. High net worth (HNW) and institutional activity was notably observed in Dialog Axiata, ACL Cables, and Commercial Bank.