ECONOMYNEXT – Colombo All Share Price Index has surpassed 18,500 mark, hitting a fresh record high on Friday after US president Donald Trump reduced Sri Lanka’s tariffs to 30 percent, down 14 percent, brokers said.
“Market was very bullish today. Investor confidence returned to the market following the US tariff rate announcement,” Dimantha Mathew, Chief Research and Strategy Officer at First Capital Holdings PLC told EconomyNext.
Tariff rate is effective from August 1. However, analysts believe Sri Lanka has a competitive advantage in some sectors after the initial “liberation day” tariff rate declined 14 percent on Thursday.
“Compared to new tariffs levied on competing nations, especially those with substantial apparel exports, we believe Sri Lanka is relatively more favourably positioned,” CAL, a Colombo based investment banking group said.
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The broader ASPI gained 2.09 percent, or 379.77 points, to close at 18,541.26 after recording a small dip in early morning trade; while the S&P SL20 moved 2.39 percent, or 127.86 points higher, to 5,486.50.
“There was interest on blue chip and construction counters, specially on John keels with the new casino expected to be opened in August and general bullishness in other counters,” Mathew said.
The ASPI was pushed by Sampath Bank, which ended 5.25 rupees higher at 132.00; HNB, which rose 12.75 rupees to 346.75; John Keells Holdings, which ended 0.60 rupees stronger at 24.10; Commercial Bank, which moved 3.50 rupees to 163.50; and DFCC, which climbed 4.50 rupees to close at 117.75.
Turnover fell to 5.9 billion rupees on Wednesday, while the share volume was 176,611,417.
However, investor sentiment surrounding stocks with export exposure was mixed on Friday.
Teejay Lanka rose 0.60 rupees to 48.60, Hayleys moved 1.00 rupees higher to 170.00, Hayleys Fiber traded 2.30 stronger at 49.80 while Hayleys Fabrics was 0.60 rupees down at 46.40 and Haycarb, a exporter of activated carbon declined 0.40 rupees to 89.30.
In the region, Japan’s benchmark Nikkei 225 index was dragged down by the sell-off of fast retailing after the Uniqlo clothing chain, an apparel retailer – operator released earnings the previous day, Japan’s The Mainichi Newspaper said.
Nikkei 225 index was 0.19 percent, or 76.68 points down, at 39,569.68.
Pakistan and Russia have signed an agreement on Friday to revive and expand the Pakistan Steel Mills project in Karachi, The Dawn newspaper said. Pakistan is yet to receive the US tariff letter.
Country’s Karachi Stock Exchange 100 index was trading 0.53 percent higher at 134,496.64 while India’s BSE Sensex fell 0.83 percent to 82,500.47 and Nifty 50 was 0.81 percent or 25,149.85.
Profit taking and “risk-off sentiment” have weighed down the Indian equity markets.
Globally, gold prices have rose for the third session as US president Donald Trump’s tariffs have lifted demand for safe haven asset, Reuters said
As at 3.55 pm Sri Lankan time, spot gold was trading at 3,357.01 US dollars, up 25.58 US dollars. (Colombo/Jul11/2025)