Global stock markets ruffled by US President’s tariff decisions

By Hiran H.Senewiratne

Major global stock markets yesterday were somewhat affected by US President Donald Trump’s recent announcement on the imposition of tariff/tax on China, Mexico and the European Union for US imports, triggering some panic selling in the stock market, market analysts said.

Due to this global scenario coupled with the long holidays stock market activities were a bit low. Consequently, both indices moved downwards. The All Share Price Index went down by 166.24 points while the S and P SL20 declined by 47.12 points.

Turnover stood at Rs 3.04 billion with four crossings. Those crossings were reported in Hayleys Fabrics, which crossed 2.4 million shares to the tune of Rs 129 million; its shares traded at Rs 53.60, Aitken Spence 352,000 shares crossed for Rs 52.8 million; its shares sold at Rs 150, ACL Cables 180,000 shares crossed for Rs 25.2 million; its shares traded at Rs 140, JKH one million shares crossed for Rs 22.8 million and its shares fetched Rs 22.50.

In the retail market top six companies that mainly contributed to the turnover were JKH Rs 317 million (14 million shares traded), Browns Investments Rs 222.7 million (25 million shares traded), Access Engineering Rs 102 million (2.5 million shares traded), SwissTec Rs 79.3 million (1.7 million shares traded), Sampath Bank Rs 73.9 million (626,000 shares traded) and Central Finance Rs 73.1 million (334,000 shares traded). During the day 121.9 million share volumes changed hands in 28115 transactions.

It is said that as usual the manufacturing sector was the main contributor to the turnover, led by JKH. Meanwhile, other sectors, such as banking and finance, also performed well.

Yesterday, the rupee was quoted at Rs 299.00/50 to the US dollar in the spot market, weaker from Rs 297.80/298.20 to the US dollar Friday, dealers said, while bond yields were broadly flat.

A bond maturing on 15.02.2028 was quoted at 10.10/20 percent, up from 10.10/15 percent. A bond maturing on 15.10.2028 was quoted at 10.32/40 percent, up from 10.35/40 percent. A bond maturing on 15.09.2029 was quoted at 10.75/80 percent, up from 10.73/77 percent. A bond maturing on 15.10.2030 was quoted flat at 11.20/30 percent.