Global Tensions Trigger Sharp Sell-Off; CSE Ends Deep in the Red

The Colombo market suffered a sharp decline on 09th March 2026, as escalating conflict in the Middle East sparked fears of a global fuel supply shock, prompting panic selling across the CSE. The ASPI plunged 818 points intraday, and despite a modest recovery, closed 797 points lower, reflecting widespread caution among investors. Many participants exited positions to mitigate losses, though the sharp correction has created attractive valuations on PE and PBV multiples for strategic buyers.

The Banking sector led turnover, recording LKR 1.85 Bn with 11.63 Mn shares traded. COMB.N dominated sector activity, generating LKR 0.72 Bn in turnover with 3.49 Mn shares exchanged. Crossings accounted for LKR 0.49 Bn (8% of total turnover), with COMB.N recording the largest block trade of LKR 0.35 Bn involving 1.75 Mn shares.

At the close, the ASPI dropped 797.77 points (-3.51%) to 21,904.14, while the S&P SL20 fell 231.89 points (-3.65%) to 6,128.86. Total turnover reached LKR 5.80 Bn, with 197.72 Mn shares traded. Market breadth weakened sharply, with only 6 gainers against 239 decliners, underscoring the intensity of the sell-off.

Positive contributors included LIOC.N (+2.32 points), CPRT.N, ABL.N, HVA.N, and AINS.N, while COMB.N (-47.60 points) led the losses alongside HNB.N, JKH.N, SAMP.N, and CTHR.N. Among notable trades, HVA.N saw strong activity, posting LKR 0.13 Bn in turnover with 20.57 Mn shares traded, closing with a gain of 14.06%.

The session highlights the continued vulnerability of the local market to external geopolitical developments, while also presenting selective buying opportunities for long-term investors.

Source: Daily Mirror