ASPI ends week higher amid mixed sentiment and geopolitical concerns

Market activity remained sensitive to developments in the Middle East, with optimism surrounding potential ceasefire extensions and signs of de-escalation supporting sentiment during the middle of the week.

“However, this momentum proved short lived, as renewed concerns linked to the Strait of Hormuz weighed on investor confidence,” Frist Capital Research in their weekly summery said.

Despite this, the market closed in positive territory on the final trading day of the week.

Trading activity was largely driven by retail participation, alongside selective involvement from high-net-worth investors. Average daily turnover generally remained within the LKR 3 billion to LKR 4 billion range, before declining sharply to LKR 2.1 billion on Friday.

Sector wise, investor interest was most pronounced in the Banking, Diversified, and Capital Goods segments.

Looking ahead, the near-term trajectory of the ASPI is expected to be influenced by evolving geopolitical conditions, in addition to key domestic factors including electricity tariff revisions, IMF related developments, and the release of March quarter earnings.