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The Colombo stock market got off to a bullish start on the first trading day of 2021 posting sharp gains and boosting its value by Rs. 53 billion.
The All Share Price Index (ASPI) gained by over 120 points or 1.78% to reach 6,894 points, highest since December 2015. The S&P SL20 Index gained by over 49 points or 1.87%. Turnover was Rs. 5 billion, almost a record a for a New Year trading.
Analysts said the market took off in 2021 from where it ended in 2020. Last year the ASPI grew by 10.5%, the highest annual increase the index has seen since 2014 and only the 12th occasion the index has seen a double digit percentage growth in CSE’s 35-year history.
The more active S&P SL20 index, which features the CSE’s 20 largest and most liquid stocks, however declined by 10.1% in 2020.
First Capital said the Bourse started 2021 on a positive note recording the highest number of trades (just over 34,000) nearly after four weeks while sustaining the drive in the positive direction for the fifth consecutive session.
“Index witnessed a continuous uptrend since the beginning of the session and closed at 6,895 with an advance of 121 points,” it added.
Food and Beverage sector led the LKR 4Bn plus turnover closely followed by Capital Goods sector making a joint contribution of 52%.
NDB Securities said the ASPI closed in green as a result of price gains in counters such as Ceylon Tobacco Company, Browns Investments and Expolanka Holdings.
It said high net worth and institutional investor participation was noted in John Keells Holdings. Mixed interest was observed in Tokyo Cement Company voting and non-voting, whilst retail interest was noted in Browns Investments, Expolanka Holdings and ACL Cables.
Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Browns Investments), whilst the sector index gained 3.32%. The share price of Browns Investments increased by Rs. 0.50 (11.63%) to close at Rs. 4.80.
Capital Goods sector was the second highest contributor to the market turnover (due to ACL Cables), whilst the sector index increased by 1.23%. The share price of ACL Cables moved up by Rs. 7.50 (9.79%) to close at Rs. 84.10.
Expolanka Holdings, Tokyo Cement Company voting and non-voting were also included amongst the top turnover contributors. The share price of Expolanka Holdings gained Rs. 1.90 (6.55%) to close at Rs. 30.90. Furthermore, the share price of Tokyo Cement Company recorded a gain of Rs. 3.70 (4.86%) to close at Rs. 79.90, whilst the share price of Tokyo Cement Company non-voting appreciated by Rs. 4.10 (6.01%) to close at Rs. 72.30.
The overall value of the stock market, which is represented by the market capitalisation, has also improved adding Rs. 109 billion during 2020 and more substantially by Rs. 983 billion since 12 May.
With bullish sentiments from investors market capitalisation gained by Rs. 53 billion (almost half of 2020 full year) and crossed the Rs. 3 trillion mark yesterday.
Last year the market capitalisation grew by Rs. 109 billion and more substantially by Rs. 983 billion since 12 May when the market resumed trading after the COVID-19 first wave-induced closure.
On a negative note foreigners started the 2021 with a net selling of Rs. 279.3 million, reflecting the continuation of the trend seen in 2020 when net outflow amounted to Rs. 52 billion.
According to Asia Securities estimated net foreign buying topped in MGT at Rs. 7.1 million and net foreign selling topped in JKH at Rs. 151.1 million.
