The Colombo Stock Exchange extended its decline on Wednesday, with both benchmark indices closing lower as escalating tensions in the Middle East continued to weigh on investor confidence. The market opened on a negative note, mirroring weakness across regional equity markets, as rising global oil prices and concerns over the potential economic impact of prolonged geopolitical uncertainty triggered broad-based selling pressure.Although the market recovered part of its early losses during the latter half of the session, investor sentiment remained cautious throughout the day. Selective buying interest was observed in several fundamentally strong counters, while the increased participation from value investors through crossing transactions highlighted continued positioning in quality stocks despite prevailing market uncertainties.

The ASPI declined by 133.80 points, or 0.61%, to close at 21,828.50, while the S&P SL20 Index fell by 35.98 points, or 0.59%, to settle at 6,099.52. Total market turnover amounted to LKR 2.25 Bn, with 210.21 Mn shares traded during the session, reflecting improved activity compared to recent sessions, mainly supported by crossing transactions.

The Capital Goods sector emerged as the largest contributor to market turnover, generating LKR 0.44 Bn with 22.21 Mn shares traded. JKH.N led activity within the sector, recording LKR 0.44 Bn in turnover on 22.21 Mn shares traded. Crossing transactions accounted for LKR 1.14 Bn, representing 50% of total market turnover, with the largest crossing recorded in COCO.N amounting to LKR 0.45 Bn involving 18.00 Mn shares.