Sri Lankan shares hit a one-week closing high on Friday as foreign investor purchases helped overcome negative market sentiment due to political uncertainty, dealers said. The Colombo stock index ended 0.16 percent firmer at 6,563.69, its highest close since February 9.
Financials led the gains, with Sampath Bank rising 3 percent and Aviva NDB Insurance Plc jumping 15.2 percent. The index fell 0.13 percent on week, after gaining for three straight weeks. The index rose on Thursday on hopes President Maithripala Sirisena's expected announcement on the future of the coalition government would ease political uncertainty.
Sirisena, however, did not address the nation as expected. "There was not much activity. The market was waiting for the president's direction," said Prashan Fernando, CEO at Acuity Stockbrokers. Prime Minister Ranil Wickremesinghe, however, addressed the media saying that the government will continue, albeit with a reshuffle of the cabinet.
Turnover stood at 735.5 million rupees ($4.74 million), below last year's daily average of 868.4 million rupees. Foreign investors bought a net 109.5 million rupees worth of shares on Friday, extending the net foreign buying to 5.5 billion rupees worth of equities so far this year.
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