26 August 2015
On Tuesday, August 25 the Colombo Stock Exchange (CSE) tumbled for the second day. The Colombo All Share Index closed at 7,231 points as it was dropped by 126 points at closing yesterday which was the most significant drop in three weeks.
Today the All Share Index dropped another 99 points and was recorded as a decline of 1.36 percent. Over the past two days alone, the Colombo Stock Exchange saw a drop of 225 points in total which a decline of 3 percent.
China’s booming economy of the last 30 years has seen the country suck in supplies of raw materials for manufacturing and, increasingly, manufactured and luxury goods from other countries.
The global sell-off has been driven by fears that China’s slowing growth means less business for everyone else. The main Shanghai Composite index closed down 7.6% at 2,964.97 points. Japan also saw more sharp falls and Tokyo’s Nikkei index was 4% lower.
On other European markets, Lisbon, Madrid and Milan were all up 3% by mid-morning and Moscow up by 2%. In face of the economic situation taking place in the World’s second largest market, China, oil prices too slumped to a six year low.