Sri Lankan share index rose for a second straight session on Friday, as retail investors bought financial stocks, but brokers said the rally will be short lived due to volatile global markets and rising returns in risk free assets. The gains helped the index recover further lost ground from its lowest close in more than 20 months hit on Wednesday.
The main stock index ended 0.51 percent or 32.53 points up at 6,382.24, its highest close since January 14. It had lost 4.5 percent in a four-session losing streak through Wednesday as some investors sold their holdings to settle margin calls, while others switched to treasury bills amid rising debt yields.
Foreign investors were net sellers of 157.7 million rupees ($1.1 million) worth of equities on Friday extending the year-to-date net foreign outflow to 2.27 billion rupees. Shares in Commercial Bank of Ceylon Plc, the country's biggest listed lender, rose 2.36 percent, while conglomerate John Keells Holdings Plc rose 0.83 percent.