The Colombo Stock Exchange trended down in Thursday midday trade, with the All Share Price Index falling 0.72% or 157.96 points to 21,759.64 and the S&P SL20 slipping 0.53% or 32.18 points to 6,058.32, according to EconomyNext.
The pullback reverses most of the 4.21% rally staged on April 8 when a Pakistan-brokered US-Iran ceasefire briefly reopened the Strait of Hormuz. Brent futures climbed back above $94 a barrel at midday after Israel launched strikes on Lebanon and Iran suspended oil tanker crossings in the strait, undermining the cross-market relief.
National Development Bank was the top positive contributor to the ASPI, rising Rs. 3 to Rs. 113 as the counter continued its recovery from the fraud-related sell-off that began on April 6. LB Finance added 2.86% to Rs. 144 and Janashakthi Insurance jumped 7.56% to Rs. 45.80, leaving non-bank financials among the session’s best performers.
Dialog Axiata fell 2.47% to Rs. 31.60, John Keells Holdings slipped 1.02% to Rs. 19.50 and Hatton National Bank dropped 0.97% to Rs. 410, weighing on the headline index. Turnover was Rs. 773 million, with capital goods accounting for Rs. 231.4 million.
In corporate announcements, Cargills Bank said it had listed 294.2 million shares following a rights issue that raised Rs. 2.5 billion, while Colombo Dockyard confirmed the appointment of Capt Jagmohan (retd) as chairman.
The midday decline is a counterintuitive reaction to the IMF staff-level agreement signed on Thursday for the combined fifth and sixth reviews of the Extended Fund Facility, which unlocks about $700 million in financing ahead of the end of May. The divergence between the positive macro signal and the muted equity response points to market sensitivity to the deteriorating Middle East ceasefire backdrop rather than a repudiation of the fiscal framework.
