CSE boosted by massive gains as global economic tensions ease

By Almas Equities Research 

The Colombo Stock Exchange (CSE) continued its bullish momentum, recording substantial volumes and turnover as the market closed above the 16,300 mark. The rally was primarily driven by positive developments in global trade relations-most notably, a deal between the United States and China on tariff restructuring, along with a new tariff agreement between the US and the UK. These agreements bolstered investor sentiment across global equity markets and are expected to ease long-standing trade disruptions.

The market closed on a strong note, posting a turnover of Rs 11.03 billion with a share volume of 457 million. The All Share Price Index (ASPI) gained 463.22 points, or 2.91 percent, to close at 16,379.39. Meanwhile, the S&P SL20 Index rose by 162.87 points, or 3.50 percent, to close at 4,820.67. Sampath Bank PLC (SAMP.N) emerged as the top contributor to the ASPI, adding 31.94 basis points.

John Keells Holdings PLC (JKH.N) recorded the highest turnover for the week, generating Rs.1.37 billion from 67.09 million shares, including Rs. 0.84 billion in crossing trades. The stock contributed 30.96 basis points to the ASPI. The Food, Beverage, and Tobacco sector was the week’s top contributor by turnover, accounting for Rs.1.51 billion.

On the macroeconomic front, the easing of global trade tensions significantly boosted market performance. Domestically, the Government of Sri Lanka (GoSL) began second-level discussions with the United States on tariff structures, further supporting trading activity. Additionally, the ongoing earnings season contributed positively to market sentiment.

As of May 16, 2025, a total of 67 companies had released their quarterly results, reporting a cumulative net profit after tax (NPAT) of Rs.84.70 billion a 23.84 percent year-on-year (YoY) increase. Looking ahead, market sentiment is expected to remain optimistic as more companies announce their financial results. These disclosures are likely to reinforce investor confidence and act as catalysts for sustained market momentum.