CSE surpasses 18,500 mark to hit all-time high as U.S. Tariff reduction fuels investor optimism

By Almas Equities Research 

The Colombo Stock Exchange (CSE) soared to All-Time High on Friday, with the All Share Price Index (ASPI) jumping 379.77 points or 2.09% to close at a record high of 18,541.26. The S&P SL20 inclined by 127.86 points or 2.39% closing at 5,486.5. Despite a brief dip at market open due to mild selling pressure, strong investor sentiment quickly took hold, sustaining a bullish rally throughout the session. Retail investors were highly active, contributing to a robust turnover of LKR 10.23 billion, with a share volume of 304.2 million.

Investor confidence was largely driven by the gradual reduction of the previously announced reciprocal tariffs by the United States, which were brought down from 44% to 30%, as confirmed by U.S. President Donald Trump. This easing of tariff pressure was seen as a constructive development, especially as the Sri Lankan government continues active trade discussions with the U.S. to further reduce the imposed tariffs. These ongoing negotiations signaled to investors the potential for improved bilateral trade terms, reinforcing optimism across the market.

Sentiment was also bolstered by the announcement from the British High Commission in Colombo, confirming that Sri Lankan apparel exports will receive duty-free access to the UK under the newly launched ‘Trade for Development’ initiative. This free trade concession is expected to provide a competitive edge to local exporters, especially in the apparel sector, and helped trigger buying interest in export-linked counters.

A total of 181 companies contributed positively to the ASPI, with market heavyweights such as SAMP.N posting a turnover of LKR 368.04 million, followed by notable performances from HNB.N, JKH.N, COMB.N, and DFCC.N. Meanwhile, crossings accounted for nearly 17% of total market turnover, with PABC.N leading the way, recording LKR 987.75 million in turnover from 21.95 million shares traded.

On the downside, 46 stocks declined, with CINS.N recording the most notable drop, trading LKR 42.02 million from just 13,652 shares. Other decliners included AHPL.N, MGT.N, LHCL.N, and CALH.N. However, the day’s overall strength, backed by easing international trade pressures and improving global market access, highlighted growing investor confidence in Sri Lanka’s economic direction and capital market prospects.