The Colombo Stock Exchange (CSE) closed Tuesday’s session in negative territory, with both benchmark indices recording notable declines as escalating tensions in the Middle East continued to dampen investor sentiment. The uncertainty surrounding global geopolitical developments prompted investors to adopt a more cautious stance, resulting in broad-based selling pressure across the market.Despite the overall weakness, selective buying interest emerged in several counters that recently reported strong quarterly earnings, highlighting continued confidence among value investors in fundamentally sound stocks. However, these purchases were insufficient to offset the broader market downturn, as investors remained focused on external risks and their potential impact on global and local economic conditions.

The All Share Price Index (ASPI) declined by 87.39 points, or 0.39%, to close at 22,177.65, while the S&P SL20 Index fell by 19.55 points, or 0.32%, to settle at 6,130.65.Market turnover amounted to LKR 2.01 billion, with total share volume reaching 87.01 million shares. Trading activity remained moderate, reflecting the cautious mood prevailing among market participants.

The Capital Goods sector emerged as the leading contributor to market turnover, generating LKR 0.55 billion with 20.73 million shares traded. JKH.N dominated sector activity, recording LKR 0.29 billion in turnover alongside 14.55 million shares traded.

Crossing transactions accounted for LKR 0.65 billion, representing 32% of total market turnover. The largest crossing was recorded in JKH.N, amounting to LKR 0.26 billion involving 13.43 million shares.Market breadth weakened considerably, with 68 gainers against 150 decliners, underscoring the widespread selling pressure witnessed across the market.Among the positive contributors to the ASPI, HAYC.N led the gains, contributing 6.96 points, followed by CCS.N, RICH.N, PKME.N, and PABC.N. On the downside, MELS.N emerged as the largest drag on the index, shedding 9.42 points, while LOLC.N, DOCK.N, BUKI.N, and DIAL.N also weighed heavily on market performance.

Among notable trades, HAYC.N attracted strong investor interest, recording a turnover of LKR 0.95 billion with 0.63 million shares traded. The counter gained 5.74% during the session, supported by continued optimism surrounding its earnings performance and growth prospects.