Sri Lankan stocks closed higher on Friday led by financials, after hitting a more than one-week closing low in the previous session, on increased appetite for risky assets by foreign investors. The Colombo stock index ended up 0.08 percent at 6,169.57, edging up from its lowest close since January 10 hit on Thursday.
The index hit a two-week high on January 13 after the European Commission proposed increased market access for Sri Lanka as a reform incentive.
Foreign investors net bought 433.4 million rupees ($2.89 million) worth equities on Friday, the highest net inflow since December 8, although they have net sold 1.35 billion rupees worth of shares so far this year. Turnover stood at 731.3 million rupees.
Shares in biggest listed lender Commercial Bank of Ceylon Plc rose 1.50 percent, while market heavyweight John Keells Holdings rose 0.57 percent. "We have seen a foreign inflow after a while and that boosted the turnover and the bulk of the trades were from the foreign trading. Rest of the market was silent," said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd. "Because the sentiment is not that great, many investors are on a wait and see approach." Rising market interest rates, which move in tandem with t-bill yields, have been a cause for concern, brokers said.
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