Panic selling grips market as US tariffs trigger sharp decline

By Almas Equities Research

The sudden imposition of steep U.S. tariffs—rising from 12 percentage to 44 percentage—has rattled investor confidence, sending markets into a tailspin. With further details on the revised tax structure still pending, export-driven firms are bracing for a significant dent in revenue. 

During the morning session, the benchmark index, All Share Price Index(ASPI) plummeted by 351 points, dragged down by heavy selling in export-oriented stocks. Retail investors led the panic-driven sell-off, exacerbating the downturn.  

A brief recovery in the early afternoon was short-lived, as the market slid again toward the close, ending the session at 15,657.60—down 349.84 points (2.19 percentage). Turnover stood at Rs. 3.82 billion,  with 123.82 million shares changing hands. Bukit Darah PLC emerged as the top positive contributor (6.27 points), while Commercial Bank of Ceylon PLC weighed the most on the index (-29.67 points).  

The S&P SL 20 mirrored the broader decline, with blue-chip stocks bearing the brunt of the sell-off. Hayleys PLC led the losers, tumbling 5.25 percentage  on heavy volumes of 1.27 million shares(turnover: Rs. 178.39 million).  

In a notable transaction, John Keells Holdings PLC divested its entire 37.62 percentage stake in Tea Smallholders—11.29 million shares at Rs. 35 per share—for Rs. 395 million via an off-market deal. This move, executed at a critical price level, will likely trigger a mandatory offer for the remaining shares in due course.