In Pakistan, the International Monetary Fund (IMF) urged authorities to heed expert advice following the receipt of the second tranche of funding. The Karachi Stock Exchange (KSE) showed mixed results, with the KSE 30 trading 0.15 per cent lower at 36,718.20
As the last week came to a close on the evening of Friday 16 May, the Colombo Stock Exchange (CSE) closed higher for a third consecutive session. This, experts said, was propelled by positive sentiment stemming from the de-escalation of the US-China trade war and the recent India-Pakistan ceasefire.
Brokers reported a 0.40 percent increase in the All Share Price Index (ASPI), which ended the day at 16,379.39 points, gaining 64.40 points.
Investor confidence surged, particularly in banking and blue-chip counters, according to Ranjan Ranatunga, Assistant Vice President – Research at First Capital. He highlighted the dual impact of international and regional developments. “The China-US agreement has given confidence to the market, and the India-Pakistan ceasefire as well,” Ranatunga told the business and economy news platform, EconomyNext. He further noted that the cessation of hostilities between India and Pakistan has fostered regional stability and security, creating a “positive momentum” within the market.
The more liquid S&P SL20 index also reflected this positive trend, closing 0.52 percent stronger, up 25.04 points at 4,820.67.
“Banking and blue chip companies saw investor interest,” Ranatunga reiterated, adding that positive March quarter results from these companies further fueled investor enthusiasm.
The day’s turnover stood at a robust 3.1 billion rupees, comfortably exceeding the monthly average of 2.3 billion rupees, indicating strong trading activity.
Not All Sectors
However, not all sectors experienced the same level of enthusiasm. “There was not much of interest on export stocks,” Ranatunga observed.
Meanwhile, Sri Lanka’s largest export market, the United States, looms with potential trade policy shifts. US President Donald Trump announced that tariff letters would be sent to all countries “over the next two to three weeks,” outlining what they would be “paying to do business in the United States.” This development casts a shadow over Sri Lankan exports, particularly with the GSP+ review still in progress.
Regional outlook
Across Asia, Indian stock markets presented a contrasting picture, ending the week’s last trading session lower as investors engaged in profit-taking. India’s Nifty 50 fell by 0.17 percent to close at 25,019.80, and the BSE Sensex was 0.24 percent lower at 82,330.59.
In Pakistan, the International Monetary Fund (IMF) urged authorities to heed expert advice following the receipt of the second tranche of funding. The Karachi Stock Exchange (KSE) showed mixed results, with the KSE 30 trading 0.15 percent lower at 36,718.20, while the KSE all share index edged up by 0.26 percent to 74,433.11.
The US-China trade truce appears to be injecting dynamism into Chinese manufacturing and trade. CNN reported a “flurry of activity” in Chinese factories and ports as companies in both nations strive to capitalize on the 90-day pause in trade tensions. However, China’s SSE Composite index traded 0.40 percent weaker at 3,367.46 in the session.
In the commodities market, spot gold was trading lower for the third consecutive session, standing at 3,223.32 US dollars as of 3:30 pm Sri Lankan time.
In the meanwhile, in India, the stock market’s performance was adequately summed up by a Fortune headline: India’s profit machines: NSE mints 64 paise profit per rupee, BSE churns 41 paise.
