The Sri Lankan stock market witnessed a significant decline today, August 8th, as both key indices ended the day lower. This downturn was largely attributed to rising geopolitical tensions in the Middle East, coupled with a general sell-off in regional markets.
The All Share Price Index (ASPI) fell by 340.85 points, settling at 21,403.28, marking a decrease of 1.57%. In a similar fashion, the S&P Sri Lanka 20 Index, which monitors the country’s most actively traded stocks, decreased by 55.58 points or 0.92%, closing at 5,968.42.
Despite the drop in stock prices, market activity remained vigorous, with a total turnover of Rs. 2.61 billion recorded for the day. Domestic investors were the most active, contributing to 96.0% of the total turnover, while the share of foreign investors was limited to just 4.0%.
During the trading session, there was a net foreign outflow of Rs. 54.12 million, as foreign selling, amounting to Rs. 132.39 million, exceeded foreign buying, which was Rs. 78.28 million. In contrast, local trading activity was relatively balanced, with domestic purchases reaching Rs. 2.54 billion against sales of Rs. 2.48 billion.
The prevailing negative sentiment in the local market was reflective of a wider trend observed throughout the Asia-Pacific region. Global markets reacted sharply to reports of Israeli airstrikes on Iran following a previous missile incident, resulting in a 3% increase in oil prices and a strengthened US dollar.
