ECONOMYNEXT – The Colombo Stock Exchange fell 0.37 percent, with brokers attributing it to profit taking and investor concern over an impending hike in electricity prices.
“We saw a bit of profit taking in the market,” Ranjan Ranatunga, Assistant Vice President – Research at First Capital told EconomyNext.
The Ceylon Electricity Board has proposed an 18.3 percent hike in electricity prices; this had affected some investor interest, Ranatunga said.
If approved, tariffs will be in effect from June 1 increasing the expenses of many businesses.
The All share Price Index dropped 61.43 points to 16,336.25.
The S&P SL20 ended 0.49 percent weaker, or 23.85 points down, to close at 4,811.19.
Turnover fell to 1.5 billion rupees in the session from 2.6 billion rupees the previous day.
“Turnover relatively slowed,” Ranatunga said. “Several banking shares were actively trading in session.”
Sentiment surrounding banking stocks worsened in the session leading many to end in the negative territory and dragging the S&P SL20 index down.
The broader ASPI was weighed down by HNB which fell 2.50 rupees to close at 306.50, Sampath Bank ended 0.75 rupees lower at 113.75, LOLC Holdings traded 6.00 rupees weaker at 598.00, John Keells Holdings was 0.10 rupees down at 21.10, and Aitken Spence ended 1.50 rupees lower at 136.75.
Share volumes declined to 58,406,690 from 91,428,880.00 in the previous session.
Investors remained uncertain as they awaited further news of US tariffs and GSP+ review.
Haycarb, a coconut shell-based activated carbon manufacture closed 0.30 rupees lower at 83.20 rupees, with a global coconut production shortage likely affecting investor interest.
In the region, India’s Nifty 50 fell 1.05 percent to close down at 24,683.90; while BSE Sensex was 1.06 percent lower at 81,186.44 on Tuesday, while Pakistan’s KSE 30 was trading 0.77 percent lower at 36,283.39 and the KSE All Share Index was trading 0.42 percent down at 73,878.89.
China’s SSE Composite index ended 0.38 percent weaker at 3,380.48 in the session.
As at 4.30 pm Sri Lankan time on Tuesday, spot gold was trading at 3,249.19 US dollars, down 12.26 US dollars for the third session. (Colombo/May20/2025)