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CSE erases 120-point intraday gain as late selling returns

By Almas Equities Research

The Colombo Stock Exchange ended marginally lower on September 30, 2026, despite remaining positive for most of the session, as late profit-taking erased a strong intraday recovery.

The ASPI gained more than 120 points during the session as sentiment improved following the Central Bank’s decision to maintain the Overnight Policy Rate at 8.75%. However, buying momentum faded towards the close, leaving the ASPI down 4.89 points, or 0.02%, at 20,812.93. The S&P SL20 similarly declined 2.24 points, or 0.04%, to 5,894.16.

Market turnover improved to LKR 1.55 billion, with 58.84 million shares traded. The Capital Goods sector led activity with LKR 557.27 million in turnover, while Access Engineering recorded the highest individual counter turnover at LKR 272.28 million.

Crossings accounted for around 14% of total turnover, led by Access Engineering with approximately LKR 119.80 million, followed by Sampath Bank with LKR 63.00 million. Further blocks were recorded in Sunshine Holdings and Softlogic Life.

Despite the marginal decline in the indices, market breadth improved noticeably, with 117 gainers against 87 decliners, resulting in an advance-decline ratio of 1.34. Foreign investors, however, returned to net selling, with an outflow of approximately LKR 67.41 million.

Dialog Axiata was the largest negative contributor to the ASPI, followed by Commercial Bank, Carson Cumberbatch, Ceylinco Insurance and Bukit Darah. Lion Brewery made the strongest positive contribution.

The strong intraday rebound and positive market breadth indicate that buying interest improved following the monetary policy decision. However, the inability to retain a gain of more than 120 points highlights continued caution and profit-taking. Investors are likely to focus on whether the broader buying interest seen today can translate into a sustained index recovery in the next session.