ECONOMYNEXT – Sri Lanka stocks slid 1.89 percent following Iran’s announcement that its parliament had voted to close the crucial Strait of Hormuz after the US attacked Iran, brokers said.
The All Share Price Index fell 322.55 points to close at 16,765; while the S&P SL20 dropped 2.02 percent, or 103.21 points, to 4,991.
“We saw panic selling on the side of retail investors, after the two events; Iran threatening to close the Strait of Hormuz which will lead to a spike in crude oil prices, following the US bombing of Iran which escalated the situation,” Dimantha Mathew, Chief Research and Strategy Officer at First Capital Holdings PLC said.
“There was selling pressure across the board.”
Oil prices rose after the US attacked Iran on Sunday. Later that day Iran’s state-run Press TV reported that the country’s parliament approved a plan to close the Strait. But the final decision lies with Iran’s Supreme National Security Council.
The ASPI was weighed down by Sampath Bank, which ended 3.25 rupees weaker at 118.00; Commercial Bank, which moved 3.50 rupees down to 148.50; John Keells Holdings which ended 0.50 rupees lower at 21.10; Melstacorp which declined 3.25 rupees to 139.25; and Hayleys, which fell 4.50 rupees to close at 156.75.
Turnover declined to 2.4 billion rupees from 2.5 billion rupees in the previous session, while the share volume was 193,856,123.
The middle-east war negatively affected most stock markets around the world on Monday, Mathew pointed out, with Sri Lanka especially affected because of the country’s dependency on crude oil.
Japan’s Nikkei 225 index ended 0.13 percent, or 49.14 points down, at 38,354.09 on Monday.
China’s Shenzhen was down 0.43 percent, 43.36 points, at 10048.39.
Pakistan’s KSE 100 index plunged 3.36 percent, to 115,995.83 on open.
India’s BSE was down 0.62 percent, 511.38 points, at 81,896.79.
“Gold eased on Monday as the dollar held firm, while market participants remained cautious, watching out for any potential Iranian retaliation to U.S. strikes on its nuclear sites,” Reuters said.
However as at 4.00 pm Sri Lankan time, spot gold was trading at 3,379.48 US dollars, up 3.58 US dollars.(Colombo/Jun23/2025)