Sri Lankan shares rose to over six-week high on Friday, despite foreign outflow from risky assets, as investors picked up shares of finance companies on expectations of better earnings, with positive sentiment continuing due to lower interest rates. The main stock index ended 0.22 percent or 15.39 points firmer at 7,129.78, its highest close since March 10. It has, gained 3.31 percent since the central bank cut key rates on April 15, while yields on t-bills have fallen 26-36 basis points since then.
"There is lot of interest in finance companies specially on the micro financing with low interest rates," a stockbroker said on condition of anonymity. "Still people are not sure of the elections." Some analysts said the markets would stay volatile until parliamentary elections are announced. The market saw a net foreign outflow for the third straight session on Friday. They have been net sellers of 35.1 million rupees worth shares on Friday extending the net foreign outflow for the past three sessions to 168.8 million rupees. But foreign buying stood at 3.63 billion rupees so far this year. Turnover was 615.4 million rupees, compared with this year's daily average of around 1.08 billion rupees.
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