ECONOMYNEXT – The Colombo Stock Exchange (CSE) rose 2.54 percent following US President Donald Trump’s announcement of an Iran-Israel ceasefire, brokers said.
The All Share Price Index moved 425.80 points up to close at 17,191.20; while the S&P SL20 rose 2.86 percent, or 142.72 points, to 5,133.
“Market has been very well after the [Iran-Israel] ceasefire announcement,” Dimantha Mathew, Chief Research and Strategy Officer at First Capital Holdings PLC said.
“THE CEASEFIRE IS NOW IN EFFECT. PLEASE DO NOT VIOLATE IT! DONALD J. TRUMP, PRESIDENT OF THE UNITED STATES!,” Trump wrote on Truth Social early Tuesday.
The CSE was “extremely bullish, recovering all the losses made in the last couple of days,” Mathew said.
Investor sentiment across the board improved, he said, with retail interest boosting the indices.
The ASPI was pushed up by Commercial Bank, which moved 5.25 rupees up to 153.50; John Keells Holdings which ended 60 cents higher at 21.70; Melstacorp which rose 4.50 rupees to 143.75; Hayleys, which rose 7.50 rupees to close at 164.25, and LOLC which rose 26.75 rupees to end at 570.25.
Turnover was 5.2 billion, while the share volume was 235,005,201.
Stock markets tumbled on Monday following Iran’s announcement that its parliament had voted to close the crucial Strait of Hormuz after the US attacked Iran.
The closure of the Strait of Hormuz, a key shipping route for oil and gas, will severely impact the global economy. US Secretary of State Marco Rubio described a potential closure of the strait as “economic suicide” in an interview with Fox News.
Equity markets in the region gained after Trump said a ceasefire was in effect.
Pakistan’s stock exchange trading was halted for an hour due to sharp upward moment on Tuesday after the Middle East news. The KSE 100 index was up 4.97 percent at 6,079.
Japan’s Nikkei 225 index moved 1.14 percent, or 436.47 points higher, to 38,790.56.
As at 3.50 pm Sri Lankan time, spot gold was trading at 3,337.03 US dollars, down 38.46 US dollars.(Colombo/Jun24/2025)
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