Oil shock and uncertainty trigger early market rout; ASPI ends lower

• 23 Mar 2026
• 0

Amid intensifying tensions in the Middle East, rising global crude oil prices, and prevailing domestic uncertainties regarding a reliable fuel and energy supply, the market declined sharply within minutes of the commencement of today’s session.

The ASPI plunged by nearly 400 points at the outset but managed to recover part of the losses during the day, ultimately closing at 20,365 points, reflecting a net decline of 275 points, while the S&P SL20 index fell by 65 points to settle at 5,687 points.

Market breadth remained negative, with 209 counters declining compared to only 39 gainers, and the primary negative contributors to the ASPI were DOCK, JKH, RIL, DIAL, and CFIN. Participation of HNW investors and retail investors was observed at below-average levels, with daily turnover recorded at 2.4Bn, a notable 52.9% decrease from the monthly average of 5.0Bn.

The Capital Goods sector led turnover with a 29% share, followed by the Banking and Diversified Financials sectors, which collectively accounted for 27%, while foreign investors remained net sellers, posting a net outflow of LKR 118.1Mn, with JKH, SINS, and DIAL recording the highest foreign outflows and PKME, WIND, and TAP attracting the largest foreign inflows.

BOND MARKET

Bond yields climb up, as panic selling grips the secondary market

The secondary market witnessed panic selling prompted by the escalating tensions in the Middle East. Trading volumes were moderate, while the yield curve eased edged up by c.15-25 bps across all bond maturities.

Over the short-term, 15.02.2028 maturity traded in the range of 9.60%-9.70%. Progressing ahead, 15.09.2029, 15.10.2029, and 15.12.2029 traded between 9.85%-10.10%. While 01.03.2030 bond changed hands within 10.05%-10.10%, 15.05.2030 maturity was dealt at 10.18%.

Moreover, 15.03.2031 was traded between 10.15%-10.25% and 01.06.2033 was seen trading at 11.05%. Finally, 15.09.2034 changed hands in a narrow range of 11.20%-11.23%.

On the external front, the LKR depreciated against the USD, closing at LKR 311.7/USD compared to LKR 311.4/USD recorded previously. Liquidity in the banking system contracted to LKR 308.3Bn from LKR 323.0Bn recorded previously.

-First Capital Research-

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