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CSE selling intensifies as ASPI falls below 20,650

By Almas Equities Research

The Colombo Stock Exchange extended its decline on 5 October 2026, with both benchmark indices closing sharply lower as selling pressure intensified across the market.

The ASPI fell 168.38 points, or 0.81%, to 20,644.26, while the S&P SL20 declined 36.48 points, or 0.62%, to 5,847.02. The ASPI slipped below 20,700 during the session, and a brief recovery attempt failed to hold as selling resumed through the afternoon.

Market turnover rose sharply to LKR 3.16 billion, with 67.64 million shares traded. However, activity was heavily concentrated, with the Capital Goods sector accounting for LKR 1.72 billion in turnover and Access Engineering alone generating approximately LKR 1.45 billion.

Crossings accounted for around 41% of total turnover, led by Access Engineering with approximately LKR 622.83 million in block trades, followed by Lanka IOC with LKR 365.64 million. Other notable crossings were recorded in Sunshine Holdings, NDB, John Keells Holdings, Lanka Milk Foods, WindForce and Watawala Plantations.

Market breadth deteriorated sharply, with only 29 gainers against 171 decliners, resulting in an advance-decline ratio of just 0.17. Foreign investors also remained net sellers, recording an outflow of approximately LKR 112.45 million.

Dialog Axiata was the largest negative contributor to the ASPI, followed by Carson Cumberbatch, Commercial Bank, GREG.N and LOLC Holdings. Lion Brewery provided the strongest positive contribution.

Despite the stronger headline turnover, the session remained firmly negative, with activity driven largely by a few large transactions rather than broad buying interest. The combination of extremely weak breadth, continued foreign selling and the ASPI falling below 20,650 indicates that short-term sentiment remains under pressure.