ASPI Slumps 1.57% in Single Day

The Sri Lankan stock market experienced a notable downturn today (08), with both major indices closing in the red as investors reacted to escalating geopolitical tensions in the Middle East and a broader sell-off in regional markets.

The benchmark All Share Price Index (ASPI) shed 340.85 points, closing at 21,403.28, a decline of 1.57%. Similarly, the S&P Sri Lanka 20 Index, which tracks the most liquid stocks, dropped by 55.58 points (0.92%) to finish the day at 5,968.42.

Despite the decline in price levels, market activity remained robust with a total turnover of Rs. 2.61 billion. Trading was heavily dominated by domestic participants, who accounted for 96.0% of the day's turnover, while foreign participation remained limited at 4.0%.

The day saw a net foreign outflow of Rs. 54.12 million, as foreign sales (Rs. 132.39 million) outpaced foreign purchases (Rs. 78.28 million). On the domestic front, buying and selling were more balanced, with domestic purchases totaling Rs. 2.54 billion and sales reaching Rs. 2.48 billion.

The negative sentiment in the local market mirrored a broader trend across the Asia-Pacific region. Global markets were rattled by news of Israeli strikes on Iran following a previous missile attack, a move that sent oil prices up by 3% and strengthened the US dollar.