Stock Market reaches 3-year high

Friday, 11 December 2020 00:20 - - {{hitsCtrl.values.hits}}

The Colombo Stock Market yesterday sustained its upward momentum to reach a three-year high, whilst turnover remained healthy though the active-stocks index dipped.

The All Share Price Index (ASPI) gained by over four points to close at 6,609 points, whilst the S&P SL20 lost its momentum and dipped by 13 points or 0.5%. Turnover was above the average of Rs. 3.88 billion, but lower as against a high Rs. 5.3 billion achieved on Wednesday.

First Capital said the ASPI reached a record three-year high, although fueled by a weak sentiment while S&P SL20 continued on its downfall.

“Index experienced a strong downtrend followed by a short-lived bounce back within the early hour of trading. Thereafter, market witnessed gradual downtrend and hit its intraday low of 6,590 before closing at 6,609, gaining merely four points,” First Capital said.

The Food and Beverage counters dominated the turnover for the session aided by Browns Investments (BIL), making a contribution of 38%.

NDB Securities said the ASPI edged up as a result of price gains in counters such as Expolanka Holdings, Nestle Lanka and CT Holdings.

It said high net worth and institutional investor participation was noted in Softlogic Life Insurance, John Keells Holdings (JKH) and Abans Electricals. Mixed interest was observed in Hemas Holdings (HHL), Tokyo Cement Company and Dipped Products, whilst retail interest was noted in BIL, Expolanka Holdings and LOLC Holdings.

The Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to BIL), whilst the sector index gained 0.16%. The share price of BIL decreased by Rs. 0.10 (2.70%) to close at Rs. 3.60.

The Capital Goods sector was the second highest contributor to the market turnover (due to HHL and JKH), whilst the sector index increased by 0.34%. The share price of HHL moved down by Rs. 0.30 (0.32%) to close at Rs. 92.60. The share price of JKH appreciated by Rs. 0.80 (0.53%) to close at Rs. 153.

Softlogic Life Insurance and Expolanka Holdings were also included amongst the top turnover contributors. The share price of Softlogic Life Insurance gained by Rs. 1.10 (3.13%) closing at Rs. 36.20, whilst foreign holdings decreased by 11,975,860 shares. The share price of Expolanka Holdings recorded a gain of Rs. 1.20 (4.80%) to close at Rs. 26.20.

Separately, Carson Cumberbatch announced an interim dividend of Rs. 0.75 per share.

Asia Securities said foreign buying was witnessed in HHL for the second consecutive day which was promising, as the stock was predominantly traded by foreigners. Foreign selling in Softlogic Life Insurance as absorbed by the institutions and HNI’s.

Estimated net foreign buying topped in HHL at Rs. 34 million and net foreign selling topped Softlogic Life Insurance at Rs. 433.5 million.