Price of war keenly felt by investor community

Investors in Sri Lanka are experiencing the full brunt of the geopolitical tensions in the Middle East, as the price of oil soars, leading to a sharp decline in the country's stock market, according to market analysts. The All Share Price Index has dropped by 93.55 points, with the S and P SL20 index falling 23.8 points. Market turnover reached Rs 1.45 billion with five crossings, involving major banks and several other companies.

Sampath Bank led the trading volume with 3 million shares, trading at Rs 142.50, while Commercial Bank saw 256,000 shares change hands for Rs 49 million. Digital Mobility Solutions, Digital Mobility Solutions recorded a turnover of Rs 30 million with 190,000 shares, and Overseas Realty completed transactions worth Rs 26 million with 493,000 shares. Royal Ceramics also contributed Rs 23 million from the sale of 469,000 shares.

In the retail market, Commercial Credit and Finance contributed Rs 38 million from the trading of 376,000 shares, while Renuka Agri contributed Rs 33 million from the sale of 2.8 million shares. Other notable companies contributing to the turnover include Sierra Cables, Singer SriLanka, Dialog Axiata, and Access Engineering.

The banking sector, particularly Commercial Bank, was the main driver of the market, accounting for nearly half of the total turnover. However, other sectors like manufacturing, telecom, and construction also performed well. Among the negative contributors, Melstacorp, Royal Ceramics Lanka, Hemas Holdings, and Dipped Products experienced declines of 1.32 percent, 1.22 percent, 1.27 percent, and 1.50 percent respectively.

The rupee weakened to Rs 328.60/70 against the US dollar in the spot market, from Rs 328.60/80 the previous day. Bond yields remained steady to lower, according to dealers.