CSE selling deepens as market breadth falls sharply

The Colombo Stock Exchange extended its decline on 29 September 2026, with both benchmark indices closing firmly lower as broad-based selling pressure continued to dominate the session.

The ASPI fell 125.97 points, or 0.60%, to 20,817.82, while the S&P SL20 declined 24.32 points, or 0.41%, to 5,896.40. The ASPI weakened steadily through the day and slipped below the 20,850 level before closing near the session low.

Market turnover recovered to LKR 1.01 billion from the previous session’s YTD low, with 69.63 million shares traded. The Capital Goods sector led activity with LKR 198.93 million in turnover, while John Keells Holdings recorded the highest individual counter turnover at LKR 91.22 million.Crossings accounted for around 10% of total turnover, led by JKH.N with LKR 75.20 million across two blocks, followed by HBS.N with a LKR 21.60 million crossing.

The most notable feature of the session was the sharp deterioration in market breadth, with only 31 gainers against 163 decliners, resulting in an advance-decline ratio of just 0.19. Foreign investors remained marginal net buyers with an inflow of approximately LKR 20.05 million.

Dialog Axiata was the largest negative contributor to the ASPI, followed by Commercial Bank, Overseas Realty, Singer Industries and Tokyo Cement. Carson Cumberbatch provided the strongest positive contribution.Despite turnover recovering above yesterday’s exceptionally low level, the heavily negative market breadth and both indices closing firmly lower indicate that short-term selling pressure remains dominant. Investors are likely to focus on whether the ASPI can find support around current levels and whether broader buying participation begins to return.