The ASPI and S&P SL 20 indices closed lower today as investor sentiment became cautious ahead of the holiday season and amidst ongoing global economic challenges.
The All-Share Price Index (ASPI) fell by 54.63 points, or 0.35%, closing at 15,526.20, while the S&P SL 20 Index dropped by 29.09 points, or 0.63%, ending at 4,614.54.
The trading session saw notable volatility, with the ASPI initially dipping sharply, touching an intraday low below 15,450, before recovering to 15,561.46 by mid-morning. However, the index gradually declined and moved sideways for the rest of the session, reflecting market uncertainty and profit booking ahead of the holidays.
Total market turnover amounted to Rs 1.59 billion, with 42.09 million shares traded. The banking sector led turnover with Rs 443.9 million, while the diversified financial sector saw the highest trading volume, with 8.9 million shares changing hands. This indicates continued liquidity in financial stocks.
Ceylinco Holdings, PGP Glass, and Carson Cumberbatch were among the top contributors to the index’s upside, while Sampath Bank, National Development Bank, and Malwatte Valley Plantation weighed heavily on the downside.
The market’s decline was attributed to global investor sentiment shifts, partly triggered by the Asian Development Bank’s lowered regional growth forecast and concerns about global monetary tightening and trade policies. These factors have dampened risk appetite in frontier markets like Sri Lanka.
Locally, the upcoming Sinhala and Tamil New Year holidays prompted many investors to de-risk, contributing to the pre-holiday market slowdown and technical correction. Despite the drop, healthy turnover and sector-specific activity indicate sustained interest. Attention will likely turn to Q1 corporate earnings and economic data after the holiday period, which will shape the next phase of market movement.
