Sri Lanka's stock market rebounded from a 10-week low on Friday led by telecoms, while foreign inflow for the first time in 12 session lifted investor sentiment. The main share index closed 0.31 percent, or 20.99 points, firmer at 6,698.83, moving up from its lowest close since July 28. It is still the second-best performer in Asia-Pacific behind New Zealand, with a return of 0.95 percent on the year.
Stockbrokers reported foreign buying in market heavyweight and top conglomerate John Keells Holdings and institutional and retail investors, who were waiting on the sidelines, also bought shares. Keells ended 1.3 percent up. The bourse saw net foreign buying of 21.8 million rupees, its first inflow in 12 sessions.
The island nation's top fixed-line phone operator Sri Lanka Telecom gained 3.8 percent, while top mobile-phone firm Dialog Axiata ended 1.2 percent firmer. Traders and analysts said investors were buying Dialog on speculation that it would buy into a local fixed-line operator.
Retail LP gas seller Laugfs Gas, which accounted for 42 percent of the day's turnover and 22.9 percent of volume, closed 17.80 percent firmer at 48.30 rupees on speculation that state-run Litro gas management would be handed over to it. A Lauggfs spokesman said there was no such move. Turnover was 2.3 billion Sri Lanka rupees ($20.9 million), the highest since September 30, and less than last year's average of 2.4 billion and this year's 2.7 billion. Friday's total volume was 90.3 million, against a five-day average of 84.9 million. The 30-day and 90-day average trading volumes were 145.9 million and 138.7 million. Last year's daily average was 67.9 million.
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