The CSE market capitalisation surpassed Rs. 8 trillion for the first time, reflecting renewed investor confidence and robust trading activity. Key indices ended higher, supported by strong performances in the diversified financials and capital goods sectors.
CSE market capitalisation hits Rs. 8 trillion as indices rise in positive trading
The CSE market capitalisation crossed the Rs. 8 trillion benchmark yesterday, marking a historic milestone for Sri Lanka’s stock market. The All Share Price Index (ASPI) closed 0.23% higher, gaining 51.49 points to finish at 22,372.57, while the S&P SL20 Index rose 0.29%, up 18.15 points to 6,225.52.
Market turnover remained strong at over Rs. 5.7 billion, with more than 390.9 million shares traded. Foreign investors contributed positively, recording a net inflow of Rs. 45.6 million, highlighting growing interest from overseas buyers despite some volatility in select stocks.
According to First Capital Research, the Colombo Stock Exchange ended the session in positive territory, with retail participation noticeably increasing compared to the previous day. High-net-worth (HNW) activity remained moderate, and despite the overall gains, the number of negative contributors slightly exceeded the positives.
Key contributors to the index included prominent stocks such as WIND, DIAL, HNB, PLC, and NDB, which provided upward momentum. Sector-wise, the Diversified Financials sector led turnover with a 26% share, while Capital Goods and Utilities collectively accounted for 27% of traded value.
Despite the market gains, turnover reflected an 18% decline from the monthly average of Rs. 7 billion, indicating a measured pace in trading activity. Analysts note that while the market shows signs of optimism, the moderation in volume may suggest cautious investor sentiment in certain segments.
Foreign investor behavior shifted slightly, with net outflows of Rs. 59 million recorded, contrasting earlier net buying patterns. This underscores the dynamic nature of cross-border investment in Sri Lanka’s equity market, influenced by global liquidity conditions and sector-specific developments.
The milestone of surpassing Rs. 8 trillion in CSE market capitalisation is particularly significant for both domestic and foreign investors. It reflects long-term confidence in Sri Lanka’s capital market infrastructure and the resilience of listed companies despite macroeconomic challenges.
Financial experts emphasize that such milestones are critical for the perception of market stability. Strong market capitalisation often encourages institutional participation, boosts liquidity, and attracts long-term investment, further supporting economic growth and capital formation.
Looking ahead, market participants will monitor sector-specific performance, corporate earnings, and foreign investment flows. The robust performance of diversified financials and capital goods, in particular, suggests that these sectors may continue to provide stability and growth opportunities.
The CSE market capitalisation crossing Rs. 8 trillion sets a new benchmark for the Colombo Stock Exchange and highlights the evolving landscape of Sri Lanka’s equity market. Investors, regulators, and policymakers alike view this achievement as a sign of confidence and an incentive to strengthen market governance, transparency, and investor protection frameworks.