📉 CSE Plunges 5.4% as Middle East Tensions Spark Record Point Drop

The Colombo Stock Exchange experienced a historic sell-off yesterday as escalating Iran-Israel geopolitical tensions triggered panic selling and a 30-minute circuit breaker. • Market Performance: The ASPI plummeted by 1,290.68 points (5.4%) to 22,443.38, marking its largest single-day point drop in history. The active S&P SL20 also fell significantly by 322.32 points (4.9%) to 6,313.65. • Trading Activity: Despite the initial crash, bargain hunting by value investors led to a robust turnover of Rs. 9.6 Bn, which is 62.9% above the monthly average. Market breadth was overwhelmingly negative, with 269 counters ending in the red. • Sector & Stock Highlights: • The Capital Goods sector led turnover (28%), followed by Banking and Food, Beverage & Tobacco (32% combined). • Key laggards included COMB, SAMP, HNB, JKH, and HAYL. • Contrarian gains were seen in only 5 counters, led by LIOC. • Investor Sentiment: Foreign investors were net sellers with an outflow of Rs. 59.6 Mn. While High Net Worth (HNW) participation remained subdued, retail activity was notably strong as investors sought attractive valuations following the initial dip.