CSE surges 705 points as US tariff pause boosts investor sentiment

The Colombo Stock Exchange (CSE) bounced back strongly today (10), with the All Share Price Index (ASPI) gaining 704.88 points or 4.74% to close at 15,580.83, following a global market rally triggered by the 90-day pause on US tariffs.

The sharp upturn was evident within the first 10 minutes of trading, with the rest of the session showing slight volatility. Key gainers included Commercial Bank, Hatton National Bank, Sampath Bank, John Keells Holdings, and LOLC, which significantly boosted the index.

Turnover soared to Rs. 7 billion, marking a 190.9% increase over the monthly average of Rs. 2.4 billion. High net worth and retail investors actively contributed to this increase, with the banking sector dominating the day's turnover with a 43% share. The capital goods sector followed with 22%, and consumer durables with 6%.

Foreign investors remained net buyers with an inflow of Rs. 122.3 million, though overall foreign participation was subdued. Institutional and high net worth interest was particularly strong in JKH, Sampath Bank, and Commercial Bank, while retail activity was notable in counters such as EML Consultants, Hatton Plantations, and SMB Leasing (non-voting).

The rally reflects renewed investor confidence across sectors, especially in banking and blue-chip stocks, buoyed by improving global sentiment.