Sri Lankan stocks closed at its highest in five weeks on Friday in thin trading, led by large caps such as Ceylon Tobacco Company Plc even as investors stayed away amid holiday season and political uncertainty before the January 8 presidential polls. The main stock index rose 0.63 percent, or 45.78 points, to close at 7,309.03, its highest close since November 21.
The day's turnover fell to a near two-week low of 438.1 million rupees ($3.32 million), less than a third of this year's daily average of 1.43 billion rupees, stock exchange data showed.
Shares in Ceylon Tobacco Company Plc rose 3.7 percent in low trade while Sri Lanka Telecom Plc rose 2.8 percent also in low trade.
"Market turnover is up on block deal of Dialog Axiata and Lanka IOC; if you take out that the turnover is very low as many investors and stockbrokers are still on Christmas holiday," said Reshan Wediwardene, research analyst at First Capital Equities (pvt) Ltd Analysts said low volume trading was seen in illiquid stock.
Shares in Lanka IOC Plc rose 1.55 percent while Dialog Axiata Plc ended 0.74 percent weaker.
President Mahinda Rajapaksa's United People's Freedom Alliance lost its two-thirds majority in Parliament for the first time in more than four years after two ruling party legislators, including a cabinet minister, defected to join the opposition on Monday.
Fifteen legislators, including former health minister Mithripala Sirisena, who is challenging Rajapaksa's bid for the third term, have defected after the president announced snap elections last month. Two opposition legislators have left to join the ruling party.
Political analysts see a tight race between Rajapaksa and Sirisena, whose New Democratic Front has promised to eliminate rampant corruption and reduce prices of essential goods and fuel by cutting taxes.
Rajapaksa said on Tuesday he would ensure good governance and media freedom if he bags a third term.
Net foreign inflows into stocks were 192.9 million rupees, extending net inflows to 21.83 billion rupees so far this year, exchange data showed.
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