Sri Lanka Stocks Drop 3.04% After Cyclone Ditwah; Construction Shares Rise
- Chalani Himasha
- 11 minutes ago
- 2 min read
Himasha Dissanayake, JadeTimes Staff
H. Dissanayake is a Jadetimes news reporter covering Economy
Image Source: Vecteezy
Sri Lanka’s Colombo Stock Exchange (CSE) fell to a two-month low as Cyclone Ditwah triggered heavy selling pressure across the market, according to brokers.
Ranjan Ranatunga, Assistant Vice President – Research at First Capital, said the market plunged mainly due to the severe flooding and widespread disruption caused by the cyclone. “Market dropped by over 600 points, mainly due to the flood situation,” he noted, adding that investors are currently adopting a cautious, assessment-based stance. He expects the downtrend to persist, stating, “In my opinion, I think we will continue to see selling pressure.”
The All Share Price Index (ASPI) fell 3.04%, or 690.76 points, closing at 22,022.06, while the S&P SL20 declined 2.89%, or 181.16 points, to end at 6,085.87. Selling sentiment dominated all sectors throughout the session.
Despite the overall downturn, construction-related stocks gained investor attention as the market priced in potential reconstruction and repair demand following the cyclone’s destruction. Tokyo Cement (Lanka) rose by 6.90 rupees to 98.00, Access Engineering increased by 2.40 rupees to 74.00, Kelani Cable jumped 34.00 rupees to 1,139.50, and ACL Cables added 3.00 rupees to close at 225.00.
Market turnover stood at 5.2 billion rupees, slightly below the monthly average, with a total share volume of 236,404,106.
Across Asia, equity markets traded mixed as several nations dealt with natural disasters. Japan’s Nikkei 225 fell 1.89% amid a stronger yen and speculation of an interest rate hike by the Bank of Japan. Pakistan’s KSE 100 saw early gains of 0.85%, while India’s markets closed lower as Cyclone Ditwah also impacted its southern regions. Reuters reported that the Nifty 50 dipped 0.10% to 26,175.75, while the BSE Sensex slipped 0.076% to 85,641.90 due to concerns over U.S. trade negotiations and continued foreign outflows.
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