(Reuters) - Sri Lankan shares closed higher on Friday, ending a nine-session losing streak, with turnover rising to an over-three-week high on block deals in Textured Jersey Lanka.
However, analysts said rising domestic interest rates and global economic worries still remain the main risks.
The benchmark index CSE closed 0.67 percent higher at 6,250.78, edging up from its lowest close since April 29, 2014 hit on Thursday. It has fallen 2.87 percent in the last nine sessions through Thursday.
"The block deal in Textured Jersey translated into positive sentiment," said Dimantha Mathew, research manager at First Capital Equities (Pvt) Ltd.
"With the deal, we saw some buying coming into the market. But this will be a temporary measure and overall direction in the medium term is still downward."
The key index has fallen around 10 percent this year through Thursday, amid a rise in market interest rates.
Yields on 91-day t-bills rose 13 basis points at a weekly auction on Wednesday to a more-than-two-year high, signalling a further rise in market interest rates. was 1.56 billion rupees ($10.83 million), well above this year's daily average of 731.8 million rupees and highest since Feb 2, on block deals in Textured Jersey Lanka.
Textured Jersey Lanka, which accounted for 70.1 percent of the day's turnover, ended up 1.95 percent at 31.40 rupees.
Foreign investors were net sellers of 1.09 billion rupees worth of shares on Friday, extending the net foreign outflow to 1.37 billion rupees worth of shares so far this year.
Shares in Ceylon Tobacco Company Plc CTC climbed 2 percent and Nestle Lanka Plc NEST rose 1.31 percent while Dialog Axiata Plc DIAL gained 1.01 percent.
The markets will be closed on Monday for a Buddhist religious holiday.
However, analysts said rising domestic interest rates and global economic worries still remain the main risks.
The benchmark index CSE closed 0.67 percent higher at 6,250.78, edging up from its lowest close since April 29, 2014 hit on Thursday. It has fallen 2.87 percent in the last nine sessions through Thursday.
"The block deal in Textured Jersey translated into positive sentiment," said Dimantha Mathew, research manager at First Capital Equities (Pvt) Ltd.
"With the deal, we saw some buying coming into the market. But this will be a temporary measure and overall direction in the medium term is still downward."
The key index has fallen around 10 percent this year through Thursday, amid a rise in market interest rates.
Yields on 91-day t-bills rose 13 basis points at a weekly auction on Wednesday to a more-than-two-year high, signalling a further rise in market interest rates. was 1.56 billion rupees ($10.83 million), well above this year's daily average of 731.8 million rupees and highest since Feb 2, on block deals in Textured Jersey Lanka.
Textured Jersey Lanka, which accounted for 70.1 percent of the day's turnover, ended up 1.95 percent at 31.40 rupees.
Foreign investors were net sellers of 1.09 billion rupees worth of shares on Friday, extending the net foreign outflow to 1.37 billion rupees worth of shares so far this year.
Shares in Ceylon Tobacco Company Plc CTC climbed 2 percent and Nestle Lanka Plc NEST rose 1.31 percent while Dialog Axiata Plc DIAL gained 1.01 percent.
The markets will be closed on Monday for a Buddhist religious holiday.
($1 = 144.0000 Sri Lankan rupees)
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