Trump tariff wipes out Rs. 435 b in value at CSE

THE disastrous 44% tariff on Sri Lankan products announced by US President Donald Trump last week had its full effect among investors yesterday, as the Colombo stock market suffered a trading suspension and has lost nearly Rs. 500 billion in value during the past three sessions.

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Colombo stock market suffers one of the worst dips yesterday, triggering market halt

Rs. 227 b loss yesterday brings total to nearly Rs. 500 b since 2 April

Blue chips, banks inflicted with sharp dips

Global stock exchanges too see 'bloodbaths'

The benchmark ASPI declined by 4.6% or 712 points and the active S&P SL20 plunged by 6%. The latter's dip of 5% earlier in trading saw a temporary market halt.

The Colombo Stock Exchange (CSE) saw its value worth Rs. 227 b being wiped out since President Trump's announcement, whilst Rs. 435 billion in value had been wiped out in just three days. Consequent to yesterday's crash, the ASPI's year-to-date negative return expanded to over 8%, and that of the S&P SL20 to over 12%.

The CSE's performance more or less mirrored the sell-off in global markets yesterday.

Turnover yesterday at the CSE was Rs. 6.47 billion involving 188.3 million shares. Turnover was led by DIMO (Rs. 953 million), JKH (Rs. 929 million), SAMP (Rs. 626 million), and HNBN (Rs. 606 million).

First Capital said global equity markets, particularly in Asia, endured a dramatic sell-off, with some analysts dubbing it a "bloodbath," in response to the newly unveiled tariff scheme by the US.