COLOMBO, Sri Lanka – 01 September 2026 – The Colombo Stock Exchange (CSE) experienced a day of downward pressure on Tuesday, September 1, 2026, with both key indices closing in negative territory. The market saw a substantial total turnover, yet faced significant foreign selling pressure, as detailed in the latest daily report from the CSE.
Index Performance Reflects Bearish Sentiment
The ASPI concluded the trading day at 21,318.31, marking a decline of 20.38 points or 0.10%. The year-to-date (YTD) return for the ASPI now stands at -5.77%. Similarly, the S&P SL20 Index, which tracks the top 20 liquid and large-cap companies, fell by 23.23 points (0.39%) to close at 5,986.45, with its YTD return at -2.78%.
Both indices opened higher but trended downwards throughout the trading session, as illustrated by the intra-day charts, indicating a bearish sentiment prevailing among investors for the day.
Turnover Driven by Domestic Activity, Foreigners Net Sellers
Total market turnover for the day reached a robust Rs. 2,337,139,287.68, combining equity (Rs. 2,321,714,227.65) and debt (Rs. 15,425,060.03) transactions. This substantial turnover underscores continued trading interest despite the market dip.
A closer look at investor composition reveals that domestic purchases amounted to Rs. 2,287,627,806.05, while domestic sales were Rs. 1,675,091,244.65. In contrast, foreign investors were significant net sellers, with foreign purchases at Rs. 34,086,421.60 against foreign sales of Rs. 646,622,983.00, resulting in a net foreign outflow of -Rs. 612,536,561.40. This substantial outflow highlights a cautious stance from international investors.
Market Multiples and Trading Statistics
Key market multiples as of September 1, 2026, were recorded as follows:
- Price-to-Earnings (P/E) Ratio: 11.19x
- Price-to-Book Value (P/BV) Ratio: 1.31x
- Dividend Yield (DY): 3.01%
Out of 289 listed companies, 262 were traded today. The market’s advance-decline ratio was relatively balanced with 104 positive securities and 106 negative securities, indicating a broad-based but slightly negative performance across the board.
Sectoral Insights and Top Movers
Analyzing market contributions, John Keells Holdings PLC (JKH.N) was the most significant negative contributor to the ASPI, while Browns Investments PLC (BIL.N) provided the largest positive contribution.
The top 10 gainers for the day included S M B Finance PLC (SEMB.X0000) with a 50.00% gain, Asia Siyaka Capital PLC (ASIY.N0000) up by 9.35%, and HVA Foods PLC (HVA.N0000) rising 8.00%. Among the top 10 losers were Industrial Asphalts (ASPH.N0000) declining by 16.67%, and Kelani Tyres PLC (TYRE.N0000) dropping 7.53%.
In terms of YTD sectoral performance, Telecommunication Services leads with a 47% return, followed by Commercial & Professional Services (35%) and Real Estate Management & Development (22%).
Global Market Overview
Globally, Frontier Markets in APAC saw mixed results, with Sri Lanka’s CSE All-Share daily return of -0.1% indicating a slight underperformance compared to Bangladesh (DSE Broad -0.3%) and Pakistan (Karachi All Share -0.1%) but better than Vietnam (VN Index 0.0%). Emerging markets showed varied performance, with South Korea’s KOSPI recording a strong 0.2% daily gain and an impressive 62.2% YTD return. Developed markets also displayed mixed trends, as investors reacted to global news including rising US Treasury yields and significant AI cloud deals.
Key Corporate Announcements
The CSE also saw a number of corporate announcements today, including several Right Issues from companies like Ambeon Capital PLC, Beruwala Resorts PLC, and Singer Finance (Lanka) PLC. Pegasus Hotels of Ceylon PLC announced a Sub Division of Shares, while Ceylon Land & Equity PLC and Maharaja Foods PLC declared Scrip Dividends. Numerous companies, including Kelani Tyres PLC, Commercial Credit and Finance PLC, and Ceylon Tobacco Company PLC, announced Cash Dividends with varying XD and payment dates in the coming weeks.
The market’s performance today indicates continued investor engagement, particularly domestically, but the significant foreign selling pressure suggests a need for close monitoring of macroeconomic factors and global cues moving forward.
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