ECONOMYNEXT – Sri Lanka stocks closed a marginal 0.06 percent weaker after a volatile session, brokers said.
Colombo’s broader ASPI closed 9.75 points weaker at 15,916.17, while the S&P SL20 index remained in the positive territory, up 0.06 percent, or 2.65 points, at 4,657.80.
“There was a sizeable uptick in the morning trade but selling pressure came in,” Dimantha Mathew, Chief Research and Strategy Officer at First Capital Holdings PLC told EconomyNext.
The uncertainty surrounding IMF board level agreement, US Sri Lanka tariff talks and renewing the GSP+ scheme were dampening investor interest, with the uncertainty leading many to take a wait-and-see approach.
Investor interest might resurface as the interim and annual reports of some companies were positive, Mathew said “Earnings seem to be pretty good.”
Turnover declined to 1.5 billion rupees from 1.6 billion rupees in the previous session, while share volumes declined to 97,217,562 from 127,122,536.
Mixed sentiment in banking stocks re-surfaced after the World Bank’s offer boosted financials stocks to close up on Thursday.
HNB closed up at 295.25 rupees after profits in the March 2025 quarter rose 48 percent to 10.6 billion rupees from a year ago, helped by net interest income growth, fees and a provision reversal.
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Sampath Bank ended flat at 109.50 rupees, Commercial Bank closed flat at 137.25 rupees and DFCC Bank closed down at 105.50 rupees in the session.
The All Share Price index was dragged by Cargills (Ceylon) which closed 15.50 rupees at 481.50 rupees, Hemas Holdings ended 0.40 rupees down at 24.10 rupees, Teejay Lanka, Aitken Spence fell 1.75 rupees to 125.25 rupees, and Royal Ceramic Lanka was 0.40 rupees down at 38.60 rupees in the session.
The European Union’s GSP+ preferential scheme has awarded access for Sri Lanka goods exports to the EU markets at a preferential rate thus far, but the extension of this scheme is up for review.
The country’s draconian Prevention of Terrorism Act has become a sticking point in continuing the scheme.
“Economic growth in the country will go down because we have high unemployment, people unable to pay taxes,” LIRNEasia Chair Rohan Samarajiva told a forum discussing the effects of losing GSP+.
Hayleys Fabric ended down at 41.50 rupees, Teejay Lanka was down at 45.20 rupees, Dipped Products closed down at 52.50 rupees, Hayleys Fibre fell to 48.20 rupees and Haycarb fell to 81.80 rupees, while Hayleys closed rose to 135.75 rupees.
Meanwhile, Sri Lanka might see a drop in tourists for its largest source market as Indo-Pakistan tension increases, brokers said.
With some airports in both countries closed this might contribute to a decline in Indians and Pakistanis traveling to Sri Lanka. However, brokers said tourists who were expecting to fly to India or Pakistan might now come to Sri Lanka.
According to the island’s tourism promotion office India still remains in top with 10,620 visitors, making up 31.3 percent of total arrivals in the first week of May.
In Asia, Pakistan stock market regained its confidence by recovering some of its losses made in Thursday’s session.
“Investor attention is now on the IMF Executive Board meeting later today, where Pakistan hopes to secure a $1.3 billion disbursement under its ongoing Extended Fund Facility,” Pakistan’s The Express Tribune newspaper said.
India’s Nifty 50 crashed 1.1 percent to 24,008.00 while BSE Sensex ended 1.1 percent down at 79,454.47.
London Stock Exchange’s FTSE 100 index was trading at 8,569.23, up 0.44 percent in the session after closing deals with US on its “Liberation day” tariff.
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China’s SSE Composite index dropped 0.30 percent to 3,342.00 on the day of US and China tariff talks in Geneva.
As at 4.50 p.m Sri Lankan time on Friday, spot gold was trading at 3,344.41 US dollars, up US dollars 31.67 (Colombo/May09/2025)
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