News Today: Sri Lanka’s stock market dips on pre-holiday caution and global macroeconomic uncertainty

The Sri Lankan stock market closed lower yesterday, as the All Share Price Index (ASPI) fell by 54.63 points (0.35%) to 15,526.20, and the S&P SL20 Index dropped 29.09 points (0.63%) to end at 4,614.54. The market decline came just before the Sinhala and Tamil New Year holiday break, as investors grappled with global macroeconomic challenges and local profit-taking.

The day opened with steep volatility, as the ASPI plummeted early, reaching an intraday low below 15,450. A mid-morning rebound briefly lifted the index to a session high of 15,561.46 at 11:24 a.m. However, the momentum faded, and the index slid into a sideways pattern for the remainder of the trading session. The movement reflects investor hesitation amid uncertain global cues and seasonal de-risking.

Market turnover was steady at Rs 1.59 billion, with 42.09 million shares changing hands. The banking sector led turnover with Rs 443.9 million, while the diversified financial sector dominated volume at 8.9 million shares—suggesting investors continue to favor financial counters amid economic headwinds.

Index-wise, 74 companies contributed positively, but 94 pulled the market down. Notable gainers included Ceylinco Holdings PLC (CINS.N), PGP Glass Ceylon PLC (GLAS.N), and Carson Cumberbatch PLC (CARS.N). On the flip side, Sampath Bank PLC (SAMP.N), National Development Bank PLC (NDB.N), and Malwatte Valley Plantation PLC (MAL.N) weighed heavily on the index.

The sell-off mirrored a broader shift in global investor sentiment, influenced by the Asian Development Bank’s downgraded regional growth outlook and lingering concerns over global monetary tightening and trade tensions. For frontier markets like Sri Lanka, such developments increase the risk premium.

Locally, pre-holiday caution also played a role, with many investors preferring to reduce exposure amid the long weekend. This, along with prior gains, resulted in a technical correction rather than panic selling.

Looking ahead, market attention is expected to return post-holiday with focus on Q1 corporate earnings and key economic indicators, which could steer the next phase of market direction.