CSE Plunges on global trade war fears as Trump announces 104% China tariffs

By Almas Equities Research

The Colombo Stock Exchange (CSE) suffered heavy losses Thursday as investors fled risky assets following U.S. President Donald Trump's shock announcement of 104 percent tariffs on Chinese imports, reigniting fears of a full-blown global trade war. The global decline weighed heavily on the local market, erasing nearly 50 percent of the previous day’s recovery.

The sell-off erased nearly half of Wednesday's gains, with the benchmark All Share Price Index (ASPI) tumbling 251.76 points (-1.66 percent) to close at 14,875.95. Market heavyweight John Keells Holdings emerged as the most actively traded stock with Rs. 881 million in turnover, while Hayleys PLC became the biggest drag on the index, single-handedly pulling the ASPI down by 23.37 points. The broader S&P SL20 Index fared even worse, plunging 105.80 points (-2.37 percent) to settle at 4,352.69 as banking stocks including Commercial Bank and Sampath Bank joined the rout. 

Total market turnover reached Rs. 3.08 billion with 102.55 million shares changing hands in a session marked by relentless selling pressure. Only Ceylon Tobacco Company provided modest relief, adding 13.93 points to the index as investors sought defensive plays.

Markets continue to remain volatile amid heightened global uncertainty, with investors adopting a cautious stance in the face of rising geopolitical risks.