Stock market begins December with gain

The Colombo stock market began the last month of 2020 on a positive note with healthy turnover sustaining the momentum seen in November. 

The All Share Price Index was up over 73 points or 1.18% and the S&P SL20 Index was higher by 44 points or 1.8%. In November the ASPI grew by 9%. Turnover was Rs. 2.5 billion, up 5% from Monday.

“The beginning of the month saw renewed interest on index heavy banking sector counters such as SAMP, HNB and COMB. In addition, news of accommodating tourist arrivals from Jan 2021 (within the 300/day cap) also saw investors showing interest in the leisure counters, which saw gains,” Asia Securities said.  

It said retailers were seen to be most active during the day while HNI’s were also seen participating; institutions were on the side-lines. 

First Capital said after almost three weeks, the market witnessed the largest number of trades, leading to the highest intraday advance after three-and-a-half weeks. 

“Index experienced a strong uptrend within the first 30 minutes of trading, thereafter a downtrend till mid-day. Later market recorded an upward movement and closed at 6,317 gaining 74 points,” it added.

Capital Goods sector dominated the turnover for the session followed by Food and Beverage sector, making a combined contribution of 50%. 

NDB Securities said indices closed in green as a result of price gains in counters such as Melstacorp, Aitken Spence and Commercial Bank.

It said high net worth and institutional investor participation was noted in Aitken Spence, John Keells Holdings and Distilleries Company of Sri Lanka. Mixed interest was observed in Commercial Bank, Tokyo Cement Company non-voting and Browns Investments, whilst retail interest was noted in ACL Cables, Expolanka Holdings and Melstacorp. 

Capital Goods sector was the top contributor to the market turnover (due to Aitken Spence, ACL Cables and John Keells Holdings) whilst the sector index gained 1.28%. The share price of Aitken Spence increased by Rs. 4.30 (8.85%) to close at Rs. 52.90. The share price of ACL Cables gained Rs. 5.30 (7.79%) to close at Rs. 73.30. The share price of John Keells Holdings appreciated by Rs. 0.70 (0.47%) closing at Rs. 148.90 whilst foreign holdings decreased by 400,600 shares.

Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (due to Melstacorp) whilst the sector index increased by 0.52%. The share price of Melstacorp recorded a gain of Rs. 1.50 (3.55%) to close at Rs. 43.80.

Expolanka Holdings was also included amongst the top turnover contributors. The share price of Expolanka Holdings moved down by Rs. 0.30 (1.11%) to close at Rs. 26.80.

Acuity Stockbrokers said foreign investors recorded a net outflow of Rs. 76 million as against Rs. 4.7 million outflow on Monday.

Asia Securities said estimated net foreign buying topped in COMB at Rs. 23.5 million and estimated net foreign selling topped in JKH at Rs. 59.6 million. Crossings accounted for 4.5% of the turnover.