Sri Lanka's stock market edged up on Friday led by gains in illiquid shares in thin volume as most investors remained on the sidelines despite an oversold market, with the day's turnover slumping to a two-year low. The island nation's main share index rose 0.39 percent or 24.85 points to 6,348.44, from its lowest since October 20.
The day's turnover was 533.2 million Sri Lanka rupees ($4.8 million), the lowest since December 14, 2009, and less than a quarter of last year's average of 2.4 billion and this year's 2.6 billion. The bourse witnessed a net foreign inflow of 9.3 million rupees on Friday, but thus far in 2011, offshore investors have sold 17 billion, and a record 26.4 billion in 2010.
The bourse has fallen 6.4 percent this month alone. It slipped to Asia's sixth-best performer with a year-to-date loss of 4.33 percent after being on the top for most of 2011 and in 2009 and 2010. The overall market gain was helped by Trans Asia hotel, which jumped 9.6 percent with only 100 shares being traded, and Distilleries Company of Sri Lanka rising 2.3 percent.
Dimo jumped 9.2 percent and United Motors gained 5.2 percent. On Friday, the bourse returned to neutral territory from oversold, with the relative strength index at 31.7 from Thursday's 29.88, below its lower neutral range of 30. Losers outperformed gainers by 133 to 52 on Thursday, Thomson Reuters data showed. Friday's total volume was 28.6 million, its lowest for the year, against a five-day average of 43.1 million. The 30-day and 90-day average trading volumes were 77.6 million and 107.8 million. Last year's daily average was 67.9 million.
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