CSE slips by over 2% as investors turn negative to Trump’s tariff move

Friday, 4 April 2025 01:24 - - {{hitsCtrl.values.hits}}

The Colombo stock market yesterday slumped by over 2% as investors reacted negatively to US President Donald Trump’s move to slap higher reciprocal tariff on Sri Lanka dealing a blow to critical exports.

The benchmark ASPI plunged by 350 points or 2.19% and the active S&P SL20 by 2.5%. Turnover however was higher at Rs. 3.8 billion involving 124 million shares.

The dip saw the CSE reverting to negative territory Year to Date after recovering on Wednesday.

First Capital said the Colombo bourse reversed course from earlier sessions this week, closing in the red amid volatility.

HNW participation remained subdued, while retail investors were more active. Panic selling gripped export oriented counters largely following the reciprocal tariffs imposed by the US while increased selling was noted among banking stocks as well. Negative contributors far outweighed positive ones, with COMB, HAYL, MELS, HNB, and SAMP leading the declines. A notable transaction amounting to a 38% stake of TSML shares were sold by JKH, contributing largely to turnover which was up 80.4% from the monthly average. The Capital Goods sector was the most significant contributor to the overall turnover with a 29% share, followed by the Banking sector at 24% and the Food, Beverage & Tobacco sector at 18%. Foreign investors turned net buyers, with a net inflow of Rs. 1.9 million.

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, Vallibel One and Commercial Bank. Mixed interest was observed in Tea Smallholder Factories, Hatton National Bank and Dipped Products whilst retail interest was noted in Hela Apparel Holdings, Nation Lanka Finance and LOLC Finance.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings) whilst the sector index lost 1.88%. The share price of John Keells Holdings decreased by 20 cents to Rs. 20.

The Banking sector was the second highest contributor to the market turnover (due to Commercial Bank and Hatton National Bank) whilst the sector index decreased by 2.76%. The share price of Commercial Bank moved down by Rs. 5.25 to Rs. 138.25. The share price of Hatton National Bank recorded a loss of Rs. 8 to Rs. 298.25.

Tea Smallholder Factories and Dipped Products were also included amongst the top turnover contributors. The share price of Tea Smallholder Factories gained 80 cents to Rs. 42.30. The share price of Dipped Products declined by Rs. 4.10 to Rs. 53.

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