Sri Lanka's stock market recovered from its five-month closing low on Friday as investors picked up shares battered in the recent fall, but low liquidity weighed on the market, while the rupee edged up after central bank said it will allow little volatility. Sri Lanka's main share index edged up 0.49 percent or 34.32 points to 7,050.03, inching up from its lowest since January 17.
"The indices rebounded on renewed buying interest in predominantly small cap counters," John Keells Stockbrokers said in a note. Over 6 billion rupees of cash has been locked in the recent IPOs by conglomerate ExpoLanka Holdings, which started trading on Monday, and Softlogic Holdings, which is yet to start trading on the stock exchange, bourse data showed.
Foreign investors were net buyers of 16.6 million rupees worth of shares on Friday extending the weekly inflow to 761.9 million for the week, but they have sold a net 6.23 billion rupees worth shares in 2011 after a record 26.4 billion in 2010.
The day's turnover was 2.54 billion Sri Lanka rupees ($23.2 million), slightly above last year's average of 2.4 billion but below this year's daily average of 2.93 billion. Traded volume was 212.6 million, against a five-day average of 223.4 million. The 30-day and 90-day average trading volumes were 178.7 million and 105.5 million, respectively. Last year's daily average was 67.9 million. The bourse is still Asia's best performer in 2011 with a 6.2 percent gain, after bringing in the region's top return of 96 percent last year.