Sri Lanka's share market extended its rally with a more than 2 percent gain on Friday as investors snapped up risky assets after market heavyweight and bellwether John Keells Holdings CM posted strong earnings. The main share index rose 2.38 percent or 133.04 points to 5,725.44, highest since January 23. It has risen 3.04 percent in last two sessions.
Foreign investors booked profits while local institutional investors bought blue chips like Commercial Bank of Ceylon, which rose 4.00 percent to 104 rupees on foreign selling of 2.2 million shares. Net foreign sales on Friday were 157.3 million rupees, but offshore investors are net buyers of 751.2 million so far this year, after net outflows of 19.1 billion last year and a record 26.4 billion in 2010.
The day's turnover was 1.61 billion Sri Lanka rupees ($14.13 million), less than last year's average of 2.3 billion. Volume was 59.1 million shares. Last year's daily average was a record 102.7 million. The rupee closed flat at 113.89/90 to the dollar for a 45th straight session since a November 21 devaluation with the central bank selling around $6 million to defend it, dealers said. The bank has spent more than $1.07 billion keeping the exchange rate steady since November 21. It spent a net $1.79 billion in the first 10 months of last year to keep depreciation at bay.