Sri Lankan stocks rose to its second consecutive record high close on Thursday on talk that the largest public pension fund in the United States was considering investing in the local bourse, brokers said. The key Colombo all-share index rose a provisional 1.26 percent, or 20.98 points, to 1,684.08. It has gained more than 11.0 percent so far this year on hopes of upbeat third-quarter results and strength in construction stocks that are expected to benefit from post-tsunami reconstruction.

Conglomerate John Keells Holdings Ltd rose 2.95 percent, 139.50 rupees. Sri Lanka Telecom Ltd rose 4.69 percent to 16.75 rupees.

Local unit of Indian Oil Corp, Lanka IOC rose 1.89 percent, to 54 rupees.

Keells, Telecom and Lanka IOC are the top-three listed companies on the bourse, accounting for almost 25 percent of the All-share index's total market capitalisation.

The Milanka index - which tracks the most liquid and highly capitalised stocks - rose a provisional 1.89 percent, or 43.45 points, to 2,338.3 points.

Total market turnover was 786.89 million rupees with foreign purchases of 308 million rupees and foreign sales of 139 million rupees.

The Colombo Stock Exchange will be closed on Friday February 4 for independence day celebrations and will resume trade on Monday.

Copyright Reuters, 2005