• ASPI gains 1.41% on Rs. 2.2 b turnover 
• Index still down 11.7% for the year, worst among Asia-Pacific frontier markets

The Colombo Stock Exchange (CSE) staged a sharp recovery on Wednesday (28 October), with the benchmark All Share Price Index (ASPI) climbing 277.55 points, or 1.41%, to close at 19,970.22, two days after it sank to its lowest level of the year. 

The rally, however, was accompanied by heavy foreign selling, with offshore investors pulling a net Rs. 894.3 million out of the market.

Foreign investors sold shares worth Rs. 928.1 million during the session against purchases of only Rs. 33.7 million, a sharp reversal from Tuesday (27 October), when the market recorded a net foreign inflow of Rs. 35.1 million.

The more liquid S&P Sri Lanka 20 Index rose 80.26 points, or 1.43%, to 5,692.57.

Equity turnover surged to Rs. 2.17 billion, more than two-and-a-half times Tuesday’s Rs. 849 million and over three times Monday’s (26 October) Rs. 666 million, though it remained below the year-to-date daily average of Rs. 3.44 billion.

Dialog Axiata PLC dominated trading, accounting for Rs. 849.2 million, close to two-fifths of the day’s turnover, as its share price rose Rs. 1.30 to close at Rs. 43.50. Melstacorp PLC followed with Rs. 239.4 million, largely through two crossings at Rs. 176 a share, while CIC Holdings PLC, LB Finance PLC, and Digital Mobility Solutions Lanka PLC (PickMe) also featured among the top contributors to turnover. Trading in PickMe resumed Wednesday after a halt was lifted following a disclosure published on the CSE website.

Market breadth was firmly positive, with advancing stocks outnumbering decliners by roughly three to one. Standard Capital led the gainers with a rise of almost 18%, followed by Softlogic Holdings and LAUGFS Gas.

Market capitalisation rose 1.1% to Rs. 7.19 trillion.

Wednesday’s gains came after a weak start to the week. On Monday, the ASPI shed 0.23% to close at 19,640.56, its lowest close so far this year, before edging up 0.27% on Tuesday.

Despite the rebound, the index remains 4.05% lower for the month and 11.73% down since the start of the year, well below its year-to-date peak of 23,992.11. That leaves the CSE as the weakest-performing of the Asia-Pacific frontier markets tracked by the exchange, behind Pakistan, Vietnam, and Bangladesh, the last of which has gained over 10% this year.