ECONOMYNEXT – The Colombo Stock Exchange’s All Share Price Index declined 0.58 percent on Monday as US tariff uncertainties affected investor interest, brokers said.
“Market dipped today due to uncertainty surrounding US tariffs,” Ranjan Ranatunga, Assistant Vice President – Research at First Capital told EconomyNext.
Sri Lanka is yet to receive the letters of the applicable US tariff rate.
“At the level of officials we have been informed that we are on a good level, but the final decision may not be made on Sri Lanka specific matters, but the American requirements on global trade,” Treasury Secretary Harshana Suriyapperuma told reporters on Sunday.
US President Donald Trump has threatened to impose an additional 10 percent tariff on countries supporting the BRICS group.
“Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy,” Trump said on his social media platform, Truth Social on Sunday.
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The broader ASPI declined 0.58 percent, or 106.14 points, to 18,042.20; while the S&P SL20 dropped 0.49 percent, or 26.04 points, to 5,339.99.
“We saw a bit of positivity in the early morning trade. Then profit talking and dullness surrounding US tariff uncertainties weighed down the market,” Ranatunga said.
The ASPI was pushed by Melstacorp, which ended 2.75 rupees lower at 147.00; HNB, which fell 2.75 rupees to 332.25; Commercial Bank, which ended 1.25 rupees weaker at 158.50; Aitken Spence, which declined 3.00 rupees to 141.50 rupees; and NDB, which fell 1.50 rupees to close at 116.25.
Turnover fell to 2.4 billion rupees on Monday, a 3 percent decline from the monthly average of 7.4 billion rupees, Ranatunga said, while the share volume was 153,848,078.
“A bit of activity surrounding Colombo Dockyard was seen following its announcement,” he said.
Colombo Dockyard said it will offer 323 million shares at 40 rupees to existing shareholders, and controlling shareholder Onomichi of Japan will renounce their entitlement in favour of India’s Mazagon Dock Shipbuilders Limited.
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Equity markets in the region rose despite the impending US tariff announcement worsening investor sentiment.
In Pakistan, the KSE 100 index pushed past the 133,000 points mark hitting a record high. The index was trading 1.08 percent higher at 133,370.14 on Monday.
India’s Nifty 50 index ended 0.0012 percent stronger at 25,461.30 and BSE Sensex rose 0.012 percent to 83,442.50.
Singapore Straits Times Index (STI) was up 0.5 percent or 18.24 points at 4,031.86 on Monday unfazed by the US tariffs.
The country was initially proposed the lowest tariff rate of 10 percent.
As at 3.55 pm Sri Lankan time, spot gold was trading at 3,322.66 US dollars, down 10.85 US dollars. (Colombo/Jul7/2025)