Turnover was 3.4 billion rupees, according to stock exchange provisional figures.
"Despite the fall in regular stocks, penny stocks were sought after," Thakshila Hulangamuwa, vice president, business development at stock brokering firm Asha Phillip Securities said.
"We expect the market to stabilize in the coming weeks."
Brokers said retail investors had shifted a gear chasing after penny stocks.
Blue Diamonds Jewellery Worldwide shares closed at 8.00 rupees, up 1.25 with over 26 million shares traded, while its non-voting shares closed at 3.80 rupees, up 90 cents with 52 million shares changing hands, brokers said.
Over 12 million shares of Amana Takaful changed hands, Friday.
It closed at 3.30 rupees, up 30 cents, and Hotel Reefcomber closed at 4.20 rupees, up 20 cents with 15.2 million shares traded.
Muller and Phipps (Ceylon) closed at 1.
40 rupees, up 20 cents with 35 million shares traded, and Piramal Glass Ceylon closed at 3.00 rupees, up 20 cents with 33.4 million shares changing hands, brokers said.
Seylan Merchant Bank closed at 2.00 rupees, up 30 cents with 123.9 million shares traded, while its non-voting shares closed at 1.
80 rupees, up 50 cents with 55.6 million shares changing hands.
Sierra Cables closed at 3.60 rupees, up 40 cents with nearly 35 million shares traded, brokers said.
In a privately negotiated off-the-floor deal 1.
54 million Kandy Hotels Company shares changed hands at 200.00 rupees per share, brokers said. It closed at 181.00 rupees, up 6.50.
Retail investors continued to take profits from high value stocks, brokers said.
Commercial Bank closed at 179.50 rupees, down 1.50, Hatton National Bank closed at 275.00 rupees, down 6.00 on razor thin trading volumes, Nations Trust Bank closed at 53.
50 rupees, down 1.75, Sampath Bank closed at 354.
00 rupees, down 1.25 and Seylan Bank closed at 79.
50 rupees, down 50 cents.
Aitken Spence closed at 1,605.00 rupees, down 5.00, Hayleys closed at 305.00 rupees, up 5.00, Hemas Holdings closed at 195.
00 rupees, up 4.75 and John Keells Holdings, an index heavy stock closed at 204.50 rupees, up 50 cents with 1.57 million shares traded, brokers said.