Dec 19 (Reuters) - Sri Lankan stocks ended at their highest in two weeks on Friday led by blue-chips, amid political worries ahead of the Jan. 8 presidential poll, stockbrokers said.
The main stock index ended 0.31 percent firmer at 7,252.60, a level last touched on Dec. 4. It had hit a near three-week low on Wednesday.
Stockbrokers said the gains were not sustainable because there was no fundamental reason for the market to rise.
The day's turnover stood at 660.8 million rupees ($5.04 million), stock exchange data showed, less than half of this year's daily average of 1.41 billion rupees.
The bourse saw a net foreign inflow of 14.4 million rupees this session, extending net inflows so far this year to 21.7 billion rupees, exchange data showed.
Market heavyweight John Keells Holdings gained 1.74 percent to 251.30 rupees, while top fixed-line phone operator Sri Lanka Telecom rose 2.59 percent to 51.50 rupees.
Trading is expected to be sluggish due to political uncertainty ahead of the presidential polls next month, with the index seen falling through December-end.
Political analysts see a tight race between President Mahinda Rajapaksa and his former health minister Mithripala Sirisena, the consensus candidate of a united opposition.
Sirisena in his policy announcement on Friday said he would eliminate rampant corruption and reduce prices of essential goods and fuel by cutting taxes.
Eleven legislators from Rajapaksa's United People's Freedom Alliance, including Sirisena, defected after he announced snap elections last month. Two opposition legislators have defected to Rajapaksa's party.
Speculation over more defections also weighed on sentiment, analysts said.
The main stock index ended 0.31 percent firmer at 7,252.60, a level last touched on Dec. 4. It had hit a near three-week low on Wednesday.
Stockbrokers said the gains were not sustainable because there was no fundamental reason for the market to rise.
The day's turnover stood at 660.8 million rupees ($5.04 million), stock exchange data showed, less than half of this year's daily average of 1.41 billion rupees.
The bourse saw a net foreign inflow of 14.4 million rupees this session, extending net inflows so far this year to 21.7 billion rupees, exchange data showed.
Market heavyweight John Keells Holdings gained 1.74 percent to 251.30 rupees, while top fixed-line phone operator Sri Lanka Telecom rose 2.59 percent to 51.50 rupees.
Trading is expected to be sluggish due to political uncertainty ahead of the presidential polls next month, with the index seen falling through December-end.
Political analysts see a tight race between President Mahinda Rajapaksa and his former health minister Mithripala Sirisena, the consensus candidate of a united opposition.
Sirisena in his policy announcement on Friday said he would eliminate rampant corruption and reduce prices of essential goods and fuel by cutting taxes.
Eleven legislators from Rajapaksa's United People's Freedom Alliance, including Sirisena, defected after he announced snap elections last month. Two opposition legislators have defected to Rajapaksa's party.
Speculation over more defections also weighed on sentiment, analysts said.
($1 = 131.2000 Sri Lankan rupees)
(Reporting by Shihar Aneez; Editing by Sunil Nair)
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