Colombo stock market continues to fall over Trump tariff impact

Saturday, 5 April 2025 01:22 - - {{hitsCtrl.values.hits}}

The Colombo stock market plunged further yesterday as investors remained negative over the impact to the economy from US President Donald Trump’s exorbitant 44% reciprocal tariff.

The active S&P SL20 saw an over 2% decline for the second successive day and the benchmark ASPI was down by 1.8%.

For the week, the ASPI lost 2.8% and the S&P SL20 was down by over 4%.

Turnover yesterday was Rs. 3.1 billion involving 218 million shares. For the week, turnover averaged Rs. 2.8 billion.

First Capital said the Colombo bourse experienced yet another downturn exerted by increased sell-offs, closing in the red amid volatility. The ASPI ended at 15,373, steadily declining from the open and shedding 284 points. HNW participation remained subdued, while retail investors were active.

Investors demonstrated increased selling pressure brought on by Wednesday’s tariff announcement by the US. The Banking sector dipped by 2.6%, which ultimately contributed to overall decline. Negative contributors far outweighed positive ones, with SAMP, COMB, JKH, HNB, and LOLC leading the declines. The turnover marked a 71.5% increase from the monthly.

The Banking sector was the most significant contributor to the overall turnover with a 31% share, followed by the Capital Goods sector at 22% and the Diversified Financials sector at 12%. Foreign investors remained net buyers, with a net inflow of Rs. 169.7 million.

NDB Securities said high net worth and institutional investor participation was noted in Sampath Bank, John Keells Holdings, and Hemas Holdings. Mixed interest was observed in Hayleys, Hatton National Bank, and Commercial Bank, whilst retail interest was noted in Nation Lanka Finance, Hela Apparel Holdings, and UB Finance.

The Banking sector was the top contributor to the market turnover (due to Sampath Bank, Commercial Bank, and Hatton National Bank) whilst the sector index lost 2.85%. The share price of Sampath Bank decreased by Rs. 4 to Rs. 109.25. The share price of Commercial Bank recorded a loss of Rs. 4.25 to Rs. 134. The share price of Hatton National Bank declined by Rs. 6 to Rs. 292.25.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings and Hayleys) whilst the sector index decreased by 1.71%. The share price of John Keells Holdings lost Rs. 0.40 to Rs. 19.60. The share price of Hayleys moved down by Rs. 2.50 to Rs. 137.50.

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