Colombo and Manila stock markets show divergent trends

Stock markets in Sri Lanka and the Philippines showed divergent trends in early September 2026. In Sri Lanka, the Colombo Stock Exchange experienced continued foreign divestment, with a net outflow of LKR 71.29 million on Wednesday. A significant portion of this selling was driven by a single large exit from Diesel & Motor Engineering (DIMO), which recorded a net foreign outflow of LKR 57.0 million. This contributes to a year-to-date net foreign outflow of LKR 56,435.1 million.

Conversely, the Philippine Stock Exchange Index (PSEi) rebounded above the 6,100 level, closing at 6,105.99. This recovery was driven by bargain hunting and inflows from foreign investors totaling P164.54 million. International Container Terminal Services Inc. (ICTSI) was a primary driver of the index's growth. Despite the rebound, market sentiment remained cautious due to macroeconomic and geopolitical uncertainties, resulting in subdued trading volumes.