Sri Lanka’s stock market extended its losses on Friday, with the Colombo Stock Exchange (CSE) index falling by 1.8% following the US administration’s recent announcement on tariffs during “Liberation Day.” Brokers reported that investor sentiment was sharply impacted as fears of trade disruptions escalated.
The broader All Share Price Index (ASPI) dropped by 1.82%, or 284.25 points, closing at 15,373.35. Meanwhile, the S&P SL20 Index fell by 2.19%, or 101.61 points, to end the day at 4,541.71.
Banking stocks were among the hardest hit, as the announcement of higher tariffs contributed to the overall market downturn. Increased uncertainty surrounding global trade negatively affected investor confidence, making many stocks less attractive.
The top negative contributors to the ASPI included Sampath Bank, which fell 3.5% to 109.25 rupees, Commercial Bank, which dropped 3.1% to 134.00 rupees, John Keells Holdings, which lost 2.0% to 19.60 rupees, HNB, which ended 2.0% lower at 292.25 rupees, and LOLC, which declined by 2.5% to 579.50 rupees.
Although the market showed some recovery after a steep mid-morning decline, turnover was reduced to 3.17 billion rupees, with share volume rising to 218,168,230. Panic selling was also observed in certain sectors.
Globally, stock markets were also under pressure due to the ongoing trade concerns. Japan’s Nikkei 225 fell 2.75% to 33,780.58, India’s BSE Sensex declined 1.22% to 75,364.69, while South Korea’s Kospi dropped 0.9% to 2,465.42.
Economists have warned of the broader economic impact of the US tariff hike. Rehana Thowfeek, Economist and Director at Arutha Research, explained that the US market accounts for 25% of Sri Lanka’s merchandise exports, and the new tariffs could make Sri Lankan products more expensive in the US, dampening demand and severely impacting export revenues. Apparel manufacturers, in particular, are expected to face the brunt of the consequences.
Stocks of major apparel companies also felt the impact. Hela Apparel Holdings dropped by 2.8%, closing at 3.50 rupees. Other notable losers included Hayleys Fabric, which remained flat at 41.00 rupees, Teejay Lanka, down 0.4% at 46.20 rupees, and Haycarb, which closed down 2.3% at 77.70 rupees.
Tags: #SriLankaStocks #USTariffs #EconomicImpact
Sri Lanka Stock Market Slides as US Tariff Announcement Worsens Investor Sentiment
Sri Lanka’s stock market extended its losses on Friday, with the Colombo Stock Exchange (CSE) index falling by 1.8% following the US administration’s recent announcement on tariffs during “Liberation Day.” Brokers reported that investor sentiment was sharply impacted as fears of trade disruptions escalated.
The broader All Share Price Index (ASPI) dropped by 1.82%, or 284.25 points, closing at 15,373.35. Meanwhile, the S&P SL20 Index fell by 2.19%, or 101.61 points, to end the day at 4,541.71.
Banking stocks were among the hardest hit, as the announcement of higher tariffs contributed to the overall market downturn. Increased uncertainty surrounding global trade negatively affected investor confidence, making many stocks less attractive.
The top negative contributors to the ASPI included Sampath Bank, which fell 3.5% to 109.25 rupees, Commercial Bank, which dropped 3.1% to 134.00 rupees, John Keells Holdings, which lost 2.0% to 19.60 rupees, HNB, which ended 2.0% lower at 292.25 rupees, and LOLC, which declined by 2.5% to 579.50 rupees.
Although the market showed some recovery after a steep mid-morning decline, turnover was reduced to 3.17 billion rupees, with share volume rising to 218,168,230. Panic selling was also observed in certain sectors.
Globally, stock markets were also under pressure due to the ongoing trade concerns. Japan’s Nikkei 225 fell 2.75% to 33,780.58, India’s BSE Sensex declined 1.22% to 75,364.69, while South Korea’s Kospi dropped 0.9% to 2,465.42.
Economists have warned of the broader economic impact of the US tariff hike. Rehana Thowfeek, Economist and Director at Arutha Research, explained that the US market accounts for 25% of Sri Lanka’s merchandise exports, and the new tariffs could make Sri Lankan products more expensive in the US, dampening demand and severely impacting export revenues. Apparel manufacturers, in particular, are expected to face the brunt of the consequences.
Stocks of major apparel companies also felt the impact. Hela Apparel Holdings dropped by 2.8%, closing at 3.50 rupees. Other notable losers included Hayleys Fabric, which remained flat at 41.00 rupees, Teejay Lanka, down 0.4% at 46.20 rupees, and Haycarb, which closed down 2.3% at 77.70 rupees.
Tags: #SriLankaStocks #USTariffs #EconomicImpact