The Colombo Stock Exchange extended its gains on Thursday, supported by improving investor sentiment following reports that the United States and Iran had signed a Memorandum of Understanding (MoU) paving the way for a potential peace agreement. The development boosted confidence across global markets and spilled over into the local bourse, helping both benchmark indices close in positive territory.Despite the improved sentiment, overall market activity remained relatively moderate as investors largely adopted a wait-and-see approach ahead of the anticipated formal signing of the peace agreement on Friday. Market participants also continued to monitor global developments and domestic economic indicators for further signs of stability that could support a sustained recovery in equities.

The ASPI gained 50.23 points, or 0.22%, to close at 22,436.14, while the S&P SL20 advanced 16.06 points, or 0.26%, to 6,226.78. Turnover stood at LKR 3.12 Bn, with a total of 103.92 Mn shares changing hands during the session, reflecting moderate participation despite the positive undertone.