Sri Lankan shares rose for a fourth straight session on Friday to end at their highest close in eight weeks as retail investors bought beaten-down stocks. However, continued foreign outflows on worries over macroeconomic stability weighed on sentiment, dealers said. Foreign investors offloaded a net 56.6 million rupees ($391,695.50) worth of equities, their seventh straight session of selling, and extending the year-to-date outflows to 3.3 billion rupees. The benchmark stock index ended 0.73 percent higher at 6,275.62, its highest close since February 12.
"Mostly it is retail-driven. With the prime minister's visit to China, we have seen some interest in manufacturing sector," said Dimantha Mathew, head of research, First Capital Equities (Pvt) Ltd. Turnover was 764.9 million rupees, just below this year's daily average of 790.7 million rupees. Analysts, however, said investors are cautious about macroeconomic uncertainty after a rating downgrade and unclear capital gains tax.