Feb 6 (Reuters) - Sri Lankan shares ended at a one-week high on Friday with strong turnover despite foreign outflows as investors snapped up beaten down blue-chips like John Keells Holdings Plc and Commercial Bank of Ceylon Plc.
The main stock index ended up 1.64 percent, or 115.44 points, at 7,162.75, its highest close since Jan.30.
"Investors are in a positive mindset with the cabinet deciding to go ahead with Chinese port city project. This means the new government is continuing the projects of the past administration," said Reshan Wediwardana, research analyst at First Capital Equities (Pvt) Ltd.
On Thursday, the government said it would allow a $1.5 billion "port city" deal with China to go ahead, apparently dropping its earlier threats to cancel the project, approved by the last government.
Friday's turnover was 2.07 billion rupees ($15.6 million), well above last year's daily average of 1.42 billion rupees, exchange data showed.
John Keells Holdings gained 3.67 percent, while Commercial Bank of Ceylon Plc, the country's biggest listed lender, rose 3.7 percent.
Foreign investors sold a net 174.3 million rupees worth of shares, but have net bought 733.3 million rupees in equities this year. The bourse had net foreign inflows of 22.07 billion rupees last year.
The index fell 5.1 percent in the two sessions through Monday after the new government announced a budget that imposed a one-time 'super gain tax' of 25 percent on companies or individuals who made more than 2 billion rupees in profit in 2013/2014.
The main stock index ended up 1.64 percent, or 115.44 points, at 7,162.75, its highest close since Jan.30.
"Investors are in a positive mindset with the cabinet deciding to go ahead with Chinese port city project. This means the new government is continuing the projects of the past administration," said Reshan Wediwardana, research analyst at First Capital Equities (Pvt) Ltd.
On Thursday, the government said it would allow a $1.5 billion "port city" deal with China to go ahead, apparently dropping its earlier threats to cancel the project, approved by the last government.
Friday's turnover was 2.07 billion rupees ($15.6 million), well above last year's daily average of 1.42 billion rupees, exchange data showed.
John Keells Holdings gained 3.67 percent, while Commercial Bank of Ceylon Plc, the country's biggest listed lender, rose 3.7 percent.
Foreign investors sold a net 174.3 million rupees worth of shares, but have net bought 733.3 million rupees in equities this year. The bourse had net foreign inflows of 22.07 billion rupees last year.
The index fell 5.1 percent in the two sessions through Monday after the new government announced a budget that imposed a one-time 'super gain tax' of 25 percent on companies or individuals who made more than 2 billion rupees in profit in 2013/2014.
($1 = 132.8000 Sri Lankan rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Prateek Chatterjee)
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