📈 CSE Ends Lower Post-Policy Rate Hike & Middle East Tensions

The Colombo Stock Exchange (CSE) closed in the red yesterday amid heavy foreign selling. Investor sentiment was dampened by the Central Bank's recent 100bps overnight policy rate hike and escalating Middle East tensions following a US strike on Iranian missile facilities. • Market Indices: The All Share Price Index (ASPI) dropped 0.85% (-189.63 points) to close at 22,175.14, while the S&P SL20 fell 0.98% (-60.84 points) to 6,118.26. The decline was broad-based, with 176 counters closing lower against 53 gainers. • Turnover & Volume: Total market turnover stood at Rs. 4.93 Bn, with over 94.3 million shares traded. Subdued retail investor participation was observed. • Foreign & Institutional Activity: Foreign investors were heavy net sellers, resulting in a major net outflow of over Rs. 3.00 Bn. High-Net-Worth (HNW) participation was high, with crossings accounting for 66.4% of the total market turnover. • Sector Performance: The insurance sector dominated market activity, leading daily turnover with a massive 65% share. This was heavily driven by a single crossing in AAIC worth Rs. 3.10 Bn. The banking and diversified financials sectors collectively contributed 15% to the daily turnover. • Top Laggards: The top negative contributors dragging down the ASPI included major players in the banking and diversified conglomerates sectors, specifically SAMP, HAYL, JKH, HNB, and NDB.