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View all(61)📈 CSE Hits 7-Month High with Rs. 12.23 Bn Turnover Driven by Major Stake Sale
• Overall Market Performance: - Daily turnover reached Rs. 12.23 Bn, marking the highest single-day turnover since January 8, 2026. - The All Share Price Index (ASPI) gained +102.73 points to close at 21,269.67. - The S&P SL20 index increased by +26.41 points, ending at 5,971.50. • Key Transaction Drivers: - Commercial Credit and Finance PLC (financial services): A major crossing of 89.78 million shares generated Rs. 9.02 Bn in turnover. Combined with regular market trading of Rs. 351 Mn, total turnover for the stock reached Rs. 9.37 Bn. - Ownership Change: Seller Group Lease Holdings PTE LTD (under liquidation) offloaded its 29.99% stake to a group of local investors. • Other Notable Activity: - United Motors Lanka PLC: Recorded a key share crossing worth Rs. 1.02 Bn.
📈 Global Oil Prices Rise Amid Middle East Supply Tensions
• Market & Price Movements: Global crude oil prices moved upward as market investors maintained caution over diplomatic negotiations and ongoing regional security risks. • Brent crude futures gained 46 cents (+0.58%) to reach US$ 79.91 per barrel. • U.S. West Texas Intermediate (WTI) crude added 36 cents (+0.48%) to settle at US$ 75.58 per barrel. • Geopolitical & Diplomatic Developments: Iran and Oman have finalized coordinates for a shipping route through the strategic Strait of Hormuz, with a joint announcement pending. The proposed arrangement would grant Tehran oversight of Gulf-bound maritime traffic, though U.S. officials maintain opposition to Iranian control over the vital energy transit corridor. • Supply Disruptions & Regional Risks: Maritime supply chain concerns remain elevated following reported Houthi missile strikes on Saudi oil tankers in the Red Sea and Gulf of Aden. July crude oil and condensate exports from Gulf nations remained approximately 40% below pre-conflict benchmarks. • Inventory Data: In the U.S., crude oil inventories saw an increase as refinery processing slowed slightly and import volumes edged higher.
📈 Global Market Shift: Tech Stocks Surge & Oil Prices Slide
• Asian Markets & Tech: Asian equities rallied, driven by strong earnings and renewed demand for technology and AI. Japan’s Nikkei surged 3.5%, South Korea jumped 4.3%, MSCI Asia-Pacific ex-Japan rose 2.3%, and Chinese blue chips gained 1.5%. However, AMD dropped 8.8% post-market after earnings fell short of high expectations, while SpaceX fell 7.5% over capex and cash flow concerns ahead of 912 million insider shares becoming eligible for sale. • Oil & Energy: Oil prices continued to slide as mediation progress in the U.S.-Iran conflict eased supply fears. Brent crude fell 0.6% to US$ 78.85/bbl (down from its July high of US$ 102/bbl), while U.S. crude declined 0.9% to US$ 75.09/bbl. Traffic through the Strait of Hormuz reached 40%–45% of pre-war levels, nearing the 50%–60% threshold required to signal oversupply. • Bonds & Currencies: Falling energy prices eased inflation concerns, lowering 10-year U.S. Treasury yields to 4.603%. Lower yields boosted non-yielding gold by 1.6% to US$ 4,140/oz. Traders reduced the likelihood of a September Fed rate hike to 57%. The Euro held flat at US$ 1.1537, while the New Zealand dollar dropped 0.3% following a decade-high June quarter unemployment rate of 5.6%.
📉 CSE Hits Over 3-Month Low Amid Foreign Outflows
• Market Performance Overview - ASPI: Down 0.19% (-39.7 pts) to 21,082.08, marking a more than 3-month low. - S&P SL20: Down 0.06% (-3.35 pts) to 5,936.94. - Market Breadth: 120 stocks closed in the red against 79 in the green. • Turnover & Foreign Activity - Total Turnover: Over Rs. 2.9 Bn on 97.1 Mn+ shares traded. - Foreign Flow: Net outflow of over Rs. 1 Bn. - Investor Sentiment: Mixed sentiment prevailed despite healthy turnover driven by crossing transactions; HNW participation remained high, while retail participation was average. • Sector Breakdown - The retailing sector led daily turnover with a 37% share. - The capital goods and banking sectors together contributed 44% of daily turnover. • Key Stock Movers - Main Losses: Weighted down by CTHR, CINS, HHL, SAMP, and HNB. - Main Gains: Supported by positive contributions from JKH, NTB, RICH, PABC, and CARS.
📉 Global Oil Prices Plunge 5% as US Halts Iran Strike Plans
• Price Movements & Market Figures: - Brent crude fell 5.07% to US$ 83.47 per barrel. - West Texas Intermediate (WTI) futures dropped 5.88% to US$ 79.77 per barrel. - The drop unwinds part of July's +20% price surge caused by Middle East conflict and Red Sea shipping fears. • Key Market Drivers: - US President Trump called off planned military strikes on Iran following regional diplomatic interventions. - Iran is finalizing negotiations with Oman for revised shipping arrangements through the Strait of Hormuz. - OPEC+ approved a production quota increase of ~188,000 barrels per day (bpd) for September. • Impact on Shipping & Logistics and Fuel & Energy: - Two Saudi oil tankers transited the Bab el-Mandeb Strait, though 3 new tanker attacks highlight ongoing maritime risks. - Easing crude benchmarks offer potential relief to net energy importers like Sri Lanka by reducing pressure on the national fuel & energy import bill and trade deficit.
📈 Foreign Inflows into Sri Lanka Govt Securities Hit Three-Year High
Foreign portfolio investment in rupee-denominated Government securities recorded a strong surge, extending a sustained buying trend by overseas investors. • Overall Inflows: Net inflow of Rs. 6.44 Bn for the week ended 30 July. • Total Holdings: Total foreign holdings of Government Securities reached Rs. 188.82 Bn. • Key Milestone: Highest level of foreign holdings recorded since June 2023, marking an over three-year high. • Source: Data reported by Wealth Trust Securities (provisional data).
📉 CSE Ends Week in Red as ASPI Dips 0.2%
• Index Performance: The Colombo Stock Exchange ended the week down, with the benchmark ASPI dropping 0.2% and the S&P SL20 edging down 0.04%. On the final trading day, the ASPI fell 0.09% (-19.50 points) to 21,129.21, while the S&P SL20 declined 0.1% (-6.05 points) to 5,939.98. • Market Turnover & Activity: Daily market turnover surpassed Rs. 4.3 Bn, with over 117.1 Mn shares traded. Despite a positive morning session, afternoon profit-taking and mixed sentiment weighed on indices. High-Net-Worth (HNW) and institutional investors led activity, while retail participation remained at average levels. The main negative drag on the index came from HNB, CFIN, DFCC, HAYL, and LOLC. • Sector Breakdown: Trading was dominated by the capital goods sector, which generated 31% of daily turnover. The retailing and telecommunication sectors collectively contributed an additional 40%. • Foreign Movements: Foreign investors shifted to net buyers, generating a net inflow of Rs. 955.2 Mn.
⛽ Global Oil Prices Dip on Increased Maritime Flows Despite US-Iran Tensions
• Market Movements & Pricing • Brent crude: Slipped 1.6% (-$1.44) to $87.59 per barrel. • WTI crude: Dropped 1.9% (-$1.59) to $82.00 per barrel. • Monthly Trend: Both benchmarks remain on track for a monthly surge of ~20%. • Key Drivers & Supply Chokepoints • Prices edged down as increased shipping flows through the Strait of Hormuz eased immediate supply fears, despite ongoing U.S.-Iran conflict and stalled diplomatic talks. • The Strait of Hormuz typically handles ~20% of global crude oil and liquefied natural gas (LNG) shipments but has faced severe blockades since February 28. • Maritime Defense & Security Coalition • Saudi Arabia is establishing a 14-nation multinational maritime defense coalition—supported by Egypt, Pakistan, Turkey, Sudan, and Djibouti—to safeguard critical energy chokepoints including the Bab el-Mandeb strait, Red Sea, and Gulf of Aden. • Economic Context • Fluctuations in global crude oil benchmarks directly impact national import bills and downstream energy & transport sector costs.
📈 Sri Lanka Bond Auction: Full Rs. 250 Bn Acceptance Sparks Secondary Market Rally
The Treasury Bond auction saw total acceptance of the offered Rs. 250 Bn during its initial phase, supported by strong demand with a bid-to-accepted ratio of 2.43x. Post-auction buying frenzy drove secondary market yields below auction weighted averages. • Bond Auction Yields (Mixed Outcomes): • 01.02.2031: Weighted average at 11.90% (below pre-auction rate of 11.95%). • 15.10.2034: Weighted average at 12.42% (in line with market levels). • 15.08.2036: Weighted average at 12.91% (above previous closing rate). • 01.07.2037: Weighted average at 13.01% (above previous closing rate). • Direct Issuance: Additional 10% window open across maturities until 3:00 PM. • Secondary Market Activity: • Elevated auction yields triggered strong buying interest, driving yields down across various maturities (e.g., 2031 maturity dropped to 11.75%; 2034 dropped to 12.27%). • Money Market & Liquidity: • Net Surplus: Recorded at Rs. 175 Bn. • Central Bank Ops: Rs. 115 Bn deposited at SDFR (8.25%); Rs. 60 Bn drained via overnight repo auction at 8.68%. • Overnight Rates: Call money averaged 9.00%, Repo averaged 9.04%. • Forex Market: • Rupee: Marginal gain, spot USD/LKR closing at Rs. 336.00/336.10 (vs. previous Rs. 336.10/336.20). • Traded Volume: US$ 112.54 Mn (reported for July 28).
📉 CSE Ends Two-Day Recovery: Benchmark ASPI Down 0.4%
• Market Performance - Benchmark ASPI declined 0.38% (-80.43 pts) to 21,148.71, ending a two-day rebound. - Active S&P SL20 dropped 0.26% (-15.37 pts) to 5,946.03. - Overall market breadth was negative with 138 decliners against 58 gainers. - Total market turnover reached ~Rs. 1.1 Bn on over 31.4 Mn shares traded. - Foreign investors recorded a net outflow of Rs. 710,860. • Sector & Stock Breakdown - Capital Goods: Top turnover contributor driven by Hayleys (closed flat at Rs. 225.00) and John Keells Holdings (unchanged at Rs. 19.90). Sector index dropped 0.55%. - Banking: Second largest turnover contributor; sector index declined 0.26%. Commercial Bank shed Re. 1 to Rs. 201.50, and Hatton National Bank dropped Re. 1 to Rs. 385.25. - Key counters pulling down the ASPI included SPEN, CINS, COMB, ACL, and RICH. Lee Hedges fell 75 cents to Rs. 291.75. • Investor Sentiment - Institutional & HNW interest centered on Hayleys, Hatton National Bank, and John Keells Holdings. - Mixed interest seen in Lee Hedges, Commercial Bank, and Swisstek. - Retail trading focused on Asia Siyaka Commodities, Ceylon Land and Equity, and Janashakthi Limited.
📉 Asian Markets Waver Amid Fed Rate Uncertainty & Tech Volatility
• Global Equity & FX Trends: Asian shares struggled for direction following a volatile week driven by tech jitters and a divided US Federal Reserve. MSCI’s Asia-Pacific index fell 0.6%, Japan’s Nikkei headed for a 4.0% weekly loss, while yields on 30-year US Treasuries hit a 19-year high of 5.23%. • Energy Markets: Brent crude futures slipped below US$ 90/bbl after surging over 7% a day earlier due to escalating Middle East tensions, though regional tanker shipments continued. • Tech & Electronics Industry: - South Korea’s KOSPI fell 1% (on track for a 15% weekly slump), erasing over US$ 2 Tn in market value amid single-stock leveraged ETF sell-offs. - Samsung posted a 250-fold jump in chip profit while warning of semiconductor shortages extending into 2028. - Tech earnings diverged significantly: Microsoft gained on strong cash flow outlooks, while Meta saw stock declines following a 91% collapse in Q2 free cash flow. • US Monetary Policy: The Federal Reserve kept rates unchanged, leaving bond markets guessing. Futures now reflect a 60% probability of a rate hike in September, with 33 bps of tightening priced in by year-end.
📈 Global Oil Slips to $89.78 Amid Middle East Volatility
• Market Figures: Brent crude fell 1.06% ($ 0.96) to US$ 89.78/bbl, reversing a 7.91% spike. WTI dropped 0.76% ($ 0.64) to US$ 83.82/bbl, following a previous 6.56% surge. • Middle East Dynamics: Escalating conflicts—including U.S.-Saudi strikes on Iran-backed forces in Iraq and U.S. attacks on Iran—temporarily spiked prices. Price gains cooled as markets priced in geopolitical rhetoric and focused on actual supply flows. • Supply Flow: Around 13 million barrels per day continue to flow from the Gulf via alternative channels and workarounds, despite the closure of the Strait of Hormuz and a Red Sea blockade. • Impact on Sri Lanka: Easing global benchmarks provide temporary relief for Sri Lanka's high petroleum import bill. Lower energy prices help stabilize operational costs for key sectors, including apparel & textiles, tea processing, and logistics, supporting broader macroeconomic stability.