ECONOMYNEXT – Colombo’s All Share Price Index climbed a marginal 0.26 percent higher after dipping in early trade, seemingly unaffected by US president Donald Trump’s promised tariff letters, brokers said.
“Market had a bit of selling pressure in the morning. Buying interest which came towards the latter part of the day, completely reversed the market,” Dimantha Mathew, Chief Research and Strategy Officer at First Capital Holdings PLC told EconomyNext.
The ASPI closed 0.26 percent, or 47.42 points higher, at 18,148.34.
The S&P SL20, meanwhile, moved 0.35 percent, or 18.63 points up, to close at 5,366.03.
“We are probably going to send a letter tomorrow, may be 10 a day to various countries saying ‘hey are going to pay to do business with the US’,” Trump told reporters.
In the initial announcement, Sri Lanka was to be hit with a 44 percent tariff on all its exports to the United States. But Trump announced a pause before the implementation date.
The Sri Lanka government is in negotiations with US official, minister Anil Jayantha told parliament last week.
“That may have been why the market was initially down,” Mathew said in response to a query on the effects of the Trump tariff proposal news.
An enforcement of higher tariff compared to competitors could shrink Sri Lanka’s exports and reduce GDP by up to 1.5 percent below baseline projections and spillovers to other sectors, an International Monetary Fund report said.
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Investor interest was seen in banks, construction, capital goods and real estate shares on Friday.
“Significantly large number of crossings were seen in the market today,” Mathew said. Crossings were recorded in Commercial Bank, John Keells Holdings among other companies.
The ASPI was pushed up by John Keells Holdings which moved 0.30 rupees up to 23.70; Melstacorp which ended 2.25 rupees higher at 149.75; Commercial Bank which moved 1.50 rupees up to 159.75; HNB, which rose 1.75 rupees to close at 335.00, and Sunshine Holdings which climbed 0.70 rupees to end at 26.50.
Turnover was 6.7 billion rupees while the share volume was 156,152,085.
Equity markets in Asia ended on a mix note with Trump’s tariff worrying investors.
Tokyo stocks ended flat on Friday after hitting the 40,000 mark in early trade.
The Nikkei 225 index ended up 0.06 percent, or 24.98 points higher, at 39,810.88.
However, Indian equity markets rose on Friday on sustained domestic buying interest, particularly from Domestic Institutional Investors (DIIs), India’s The Business Standard said.
India’s Nifty 50 ended 0.22 percent higher at 25,461.00 while BSE Sensex was 0.23 percent weaker at 83,432.89.
Pakistan’s Karachi Stock Exchange 100 index was trading 0.43 percent higher at 131,250.86.
As at 3.55 pm Sri Lankan time, spot gold was trading at 3,347.39 US dollars, up 13.88 US dollars. (Colombo/Jul4/2025)
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