ASPI and S&P SL20 close lower for a second straight session as turnover falls 44% below the monthly average and foreign investors extend a year-long pattern of net selling
The Colombo Stock Exchange extended a multi-session decline on Thursday, with both benchmark indices closing lower amid thin trading activity. The All Share Price Index (ASPI) fell 109.98 points, or 0.52%, to close at 21,023.43, while the S&P SL20 Index dropped 22.33 points, or 0.38%, to 5,924.96. Both indices have now trended lower over each of the past several sessions, tracking a consistent downward path since early September.
Trading activity was notably subdued. Daily turnover totalled LKR 1.33 billion, down 18.1% from the previous session and 44.3% below the monthly average of LKR 2.4 billion. Share volume fell 20.2% day-on-day to 55.4 million shares, continuing a decline in volume that has been evident over the past several sessions. Market capitalisation stood at LKR 7,623.60 billion, down 0.6%. High-net-worth investors accounted for the bulk of the day’s turnover, while retail participation remained limited.
The Capital Goods sector led daily turnover with a 21% share, followed by the Food, Beverage and Tobacco and Banking sectors, which together contributed a further 34%. Among individual counters, TESS.X, LVEN, GEST, EML and UBF were the session’s top gainers, posting gains of up to 7%, while CRL, CLND, LGL.X, TAJ and BRR led the decliners, with losses of up to 8%.
Foreign investors remained net sellers for the session, recording an outflow of LKR 213.1 million. On a month-to-date basis, net foreign outflows total LKR 1,107.9 million. More significantly, the year-to-date net foreign outflow stands at LKR 56.8 billion, underscoring that today’s selling is part of a sustained, broader pattern of foreign divestment from Sri Lankan equities this year rather than an isolated daily move. Among individual stocks, PKME and JKH recorded the largest net foreign outflows, while BIL and DFCC saw the largest net foreign inflows.
The equity market’s weakness this week coincided with a separate but notable development in fixed income markets, where secondary bond yields rose sharply and Treasury bill auction rates climbed across all tenors — a combination that points to broader concerns among investors about the direction of interest rates.
Business Impact
Persistently thin turnover and sustained foreign outflows suggest cautious investor sentiment toward Sri Lankan equities, a factor companies considering share issuances or capital raises should weigh when timing market activity. The concentration of trading in Capital Goods, Food & Beverage and Banking counters reflects where investor interest currently sits, which may be relevant for companies in adjacent sectors assessing market appetite for their own shares.
What to Watch Next
Investors will watch whether the ASPI’s multi-session decline stabilises or continues, whether foreign selling persists or eases from its year-to-date pace, and whether rising interest rates — evident in this week’s fixed income moves — begin to weigh further on equity valuations.
Key Numbers
| Metric | Value | Change |
|---|---|---|
| ASPI | 21,023.43 | -109.98 (-0.52%) |
| S&P SL20 | 5,924.96 | -22.33 (-0.38%) |
| Turnover | LKR 1.33 Bn | -18.1% (44.3% below monthly avg.) |
| Volume | 55.40 Mn shares | -20.2% |
| Market Cap | LKR 7,623.60 Bn | -0.6% |
| Net Foreign Flow (Daily) | -LKR 213.1 Mn | — |
| Net Foreign Flow (MTD) | -LKR 1,107.9 Mn | — |
| Net Foreign Flow (YTD) | -LKR 56,848.3 Mn | — |
| PER / PBV | 10.9x / 1.3x | — |
Source Attribution
Source: Colombo Stock Exchange market data and publicly available market information.