The Colombo Stock Exchange (CSE) staged a strong recovery on Friday, with both benchmark indices posting significant gains as investor sentiment improved sharply following positive developments surrounding geopolitical tensions in the Middle East. The market’s rebound was largely driven by reports that U.S. President Donald Trump announced that both parties had reached an agreement on a potential peace deal and were awaiting final sign-off, raising hopes for a de-escalation of the conflict.

The positive news helped restore investor confidence after several sessions of weakness, triggering broad-based buying interest across the market. While overall turnover and share volume remained relatively moderate, strategic participation by value investors through crossing transactions provided additional support to the session’s upward momentum.

The All Share Price Index (ASPI) gained 367.41 points, or 1.73%, to close at 21,673.43, while the S&P SL20 Index advanced 91.77 points, or 1.55%, to settle at 6,027.05.Total market turnover stood at LKR 1.99 billion, with 83.82 million shares changing hands during the session. The Banking sector emerged as the largest contributor to turnover, generating LKR 0.49 billion from 2.25 million shares traded. NTB.N led sector activity, recording a turnover of LKR 0.23 billion with 0.78 million shares traded.