LNP – CSE dips again amid ongoing global trade tensions

By Almas Equities Research

The Colombo Stock Exchange (CSE) extended its losses as uncertainty over global tariff negotiations continued to weigh on investor sentiment. The latest U.S. tariff impositions have triggered widespread economic turbulence, further dampening the Sri Lankan market. Investor concerns intensified, particularly around the potential pressure on listed companies—especially banks, which are expected to face significant profitability challenges.

During the first half of the trading session, the market declined sharply, with the All Share Price Index (ASPI) plunging to an intraday low of 15,280.47, down 377.13 points. The drop was largely driven by losses in banking sector stocks.

However, the market staged a partial recovery in the latter half of the session, with the ASPI closing at 15,373.35—still down 284.25 points, or 1.82 percent, for the day. Turnover stood at Rs. 3.17 billion, with 218.17 million shares traded.

Industrial Asphalts (Ceylon) PLC emerged as the top positive contributor to the ASPI, adding 1.97 points, while Sampath Bank PLC was the biggest drag, pulling the index down by 26.89 points.

A notable trend was observed in the S&P SL20 Index, where all constituent stocks closed in negative territory. The index fell by 101.61 points, or 2.37 percent, with Nations Trust Bank PLC leading the decline, dropping 4.23 percent.

Investor sentiment remains fragile amid growing fears over the impact of the newly imposed U.S. tariffs on Sri Lanka, which analysts warn could further strain the country’s economy.