ECONOMYNEXT – The US-China tariff war de-escalation boosted the Colombo Stock Exchange to close 0.40 percent higher on Friday, brokers said.
“China-US agreement has given confidence to the market, and the India-Pakistan ceasefire as well,” Ranjan Ranatunga, Assistant Vice President – Research at First Capital told EconomyNext.
The market rallied for the third consecutive session, with investor interest surging on banking and big-cap shares.
The India-Pakistan ceasefire has created regional stability and security creating a “positive momentum” in the market, Ranatunga said.
Colombo’s broader All Share Price Index (ASPI) ended 64.40 points higher at 16,379.39 despite seeing a gradual fall in mid-morning trade.
The ASPI was largely pushed up by John Keells Holdings which rose 0.40 rupees to close at 21.00 rupees, LOLC Holdings ended 17.50 rupees higher at 610.00 rupees, Carson Cumberbatch traded 41.50 rupees stronger at 486.50 rupees, E B Creasy and Company was 9.50 rupees up at 50.50, and Sampath Bank ended 0.75 rupees higher at 114.25 rupees.
The more liquid S&P SL20 closed 0.52 percent stronger, or 25.04 points higher at 4,820.67.
“Banking and blue chip companies saw investor interest,” Ranatunga said. “March quarter in an important quarter. Companies have very good results.”
Turnover was 3.1 billion rupees in the session, still above the monthly average of 2.3 billion rupees.
“There was not much of interest on export stocks,” Ranatunga said.
Sri Lanka’s Hayleys Fabric ended flat at 43.00 rupees, Teejay Lanka was flat at 48.00 rupees, Dipped Products closed 0.80 rupees down at 51.30 rupees while Hayleys Fibre ended 1.70 up at 48.70 rupees; despite the global coconut shortage, Haycarb rose 3.20 to 85.00 rupees, and Hayleys closed 0.50 up at 143.50 rupees.
The US will send tariff letters to all countries “over the next two to three weeks”, US president Donald Trump has said.
“I think Scott and Howard will be sending letters out, essentially telling people – we’ll be very fair – but we’ll be telling people what they’ll be paying to do business in the United States.”
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US to send tariff letters to each country in “two to three weeks”, Trump says
US is the largest export market for Sri Lanka, which is likely to be impacted by the “tariff letters” with the GSP+ review still underway.
In Asia, Indian stock markets ended lower as profit taking set in.
“Ended the week’s last trading session on a lower note as investors rushed to book profits at higher levels,” India’s Business Standard said.
India’s Nifty 50 fell 0.17 percent to close down at 25,019.80 while BSE Sensex was 0.24 percent lower at 82,330.59 on Friday.
The International Monetary Fund urged the Pakistani authorities on Thursday to listen to its experts instead of relying on the arguments about ground realities or the Laffer Curve tax theory after Pakistan received the second tranche from the IMF.
Pakistan’s KSE 30 was trading 0.15 percent lower at 36,718.20 while the KSE all share index was trading 0.26 percent up at 74,433.11.
The US-China tariff truce has created a “flurry of activity” in Chinese factories and ports as companies in both countries rush to make the most of a 90-day pause, CNN said.
China’s SSE Composite index was trading 0.40 percent weaker to 3,367.46 in the session.
As at 3.30 pm Sri Lankan time on Friday, spot gold was trading at 3,223.32 US dollars, down 23.88 US dollars for the third session.(Colombo/May16/2025)