The Colombo stock market experienced a dramatic downturn, with Rs. 188 billion wiped off its value in the largest intraday drop in over two years. The benchmark All Share Price Index (ASPI) plummeted by 500 points, or 3%, while the more active S&P SL20 index fell by 3.3%, raising concerns it could turn negative year-to-date.
Market capitalization fell below the Rs. 6 trillion mark, closing at Rs. 5.86 trillion, down from Rs. 6.05 trillion. Turnover reached Rs. 6.35 billion with 241.3 million shares traded.
Analysts attributed the sell-off to profit-taking after a strong January performance, coupled with investor concerns over recent policy decisions and conflicting government statements. First Capital noted this was the market’s worst intraday loss since April 25, 2022, when the ASPI fell by over 600 points.
Only 16 stocks showed positive contributions, with CINS and CARG notable exceptions. The banking sector was heavily impacted, with HNB, COMB, MELS, SAMP, and NDB leading the decline.
While turnover increased from the previous session’s Rs. 3 billion, it remained below the monthly average of Rs. 6.8 billion. The insurance sector led turnover, driven by Ceylinco Holdings, followed by capital goods and food, beverage, and tobacco sectors.
Investor participation decreased, with negative sentiment dominating the session. Foreign investors became net sellers, with an outflow of Rs. 344 million.
NDB Securities highlighted high net worth and institutional investor activity in Ceylinco Holdings, Teejay Lanka, and Ceylon Cold Stores. Mixed interest was seen in several other companies, while retail interest focused on Browns Investments, John Keells Holdings, and Hatton National Bank.
Ceylinco Holdings’ share price rose by Rs. 243.25 (7.85%) to close at Rs. 3,342.25, driving the insurance sector index up 1.32%. John Keells Holdings’ share price fell by Rs. 0.60 to Rs. 22, contributing to a 3.28% decline in the capital goods sector index. Browns Investments, Teejay Lanka, and Hatton National Bank also saw declines in their share prices.