📉 CSE Slumps 2% as Mideast Tensions Drive Oil Prices Higher

The Colombo stock market snapped a two-day rally yesterday, with Rs. 173 Bn in market value wiped out as global oil prices climbed to US$ 104 per barrel amid escalating Middle East instability. • Market Indices: The All Share Price Index (ASPI) fell by 2.05% (448.91 points) to 21,419.94, while the S&P SL20 dropped 1.61% to 6,035.52. • Trading Volume: Daily turnover stood at Rs. 3.3 Bn, a 36.6% decline compared to the monthly average, with 175.3 million shares traded. • Investor Sentiment: Foreigners were net sellers with an outflow of Rs. 4.1 Mn. Participation from high-net-worth and retail investors remained average as profit-taking set in. • Sector Impact: The Materials sector led turnover (25%), followed by Capital Goods and Banking (27% combined). Top negative contributors included HNB, MELS, COMB, CTHR, and JKH. • Context: The decline follows a record-breaking two-session recovery where the market regained 48% of losses incurred since the start of the conflict. Uncertainty surrounding US–Iran negotiations remains a key pressure point for the financial and energy-sensitive sectors.