The Colombo stock market continued its downward trend yesterday, moving into negative year-to-date (YTD) territory for the first time in 2025.
The benchmark All Share Price Index (ASPI) declined by 1.84% (297 points), turning its YTD performance negative by 0.47%. Meanwhile, the S&P SL20, which had already shifted to negative territory on Monday, fell by another 1.6%, increasing its negative return to 2.33%.
Despite the market downturn, turnover improved from Rs. 1.5 billion on Monday to Rs. 2.4 billion yesterday, with 77.2 million shares traded.
According to First Capital, selling pressure and profit-taking persisted throughout the session, creating a volatile trading environment. The ASPI saw an initial sharp decline in early hours, a slight recovery midday, but continued to slide as the session progressed, closing at 15,870 with a 297-point drop.
The Banking sector led the negative movement, with DFCC, HNB, Sampath Bank (SAMP), and Commercial Bank (COMB) among the biggest detractors, alongside Ceylinco Insurance (CINS). Meanwhile, Malwatte Valley Plantations (MAL) and Hela Apparel Holdings (HELA) were among the few notable gainers.
Sector and Stock Performance
- Banking Sector: Accounted for 41% of total turnover, with Hatton National Bank (HNB) and Sampath Bank being major contributors. The sector index fell by 1.98%, with HNB’s share price decreasing by Rs. 5.75 to Rs. 310, while Sampath Bank dropped by Rs. 2.25 to Rs. 118.50.
- Capital Goods Sector: The second-highest contributor, driven by John Keells Holdings (JKH), saw its index drop by 1.18%. JKH’s share price declined by 20 cents to Rs. 20.90.
- Other Key Stocks: Dialog Axiata (DIAL) and Browns Investments (BIL) were among the top turnover contributors. Dialog Axiata’s share price remained flat at Rs. 13.60, while Browns Investments dropped by 10 cents to Rs. 7.70.
NDB Securities noted high net worth and institutional investor interest in HNB, JKH, and Melstacorp, while mixed retail interest was observed in Sampath Bank, Dialog Axiata, and Browns Investments.
With persistent market pressure, analysts anticipate continued volatility in the near term, with investors closely monitoring sector performances and macroeconomic trends.