Sri Lanka's stock market gained on Friday to a one-week high as retail investors snapped up select shares offseting foreign investors' exit from Asia's best performing market throughout the week amid fears over higher inflation due to instability in oil-producing regions.
Foreign investors were net sellers of 303 million rupees worth of shares on Friday, extending the week's outflow to 2.02 billion rupees, the highest so far this year. Offshore investors have sold a net 6.5 billion in 2011, after selling a record 26.4 billion in 2010.
The island's main share index closed 0.33 percent, or 23.52 points, firmer at 7,240.27, highest since March 17. It hit a record closing high of 7,811.82 on February 14. Analysts said investor sentiment has turned negative on move by Sri Lanka's Securities and Exchange Commission to end credit transactions by end-June and turmoil in oil-producing Middle Eastern and North African countries.
The day's turnover was 2.3 billion Sri Lanka rupees ($20.8 million), lower than last year's average of 2.4 billion rupees and well below this year's daily average of 3.3 billion. The bourse is still Asia's best performer so far in 2011 with an 9.1 percent gain, after bringing in the region's best return with 96 percent last year.
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