Sri Lankan stocks closed slightly higher on Thursday as small and foreign investors bought select blue chip shares tipped to post strong third-quarter earnings, brokers said. The key Colombo all-share index rose a provisional 0.24 percent, or 4.14 points, to 1,709.38 points. The bourse has gained over 13 percent on hopes for upbeat corporate earnings due for release in the coming weeks and gains in the construction sector seen benefiting from post-tsunami rebuilding.

The Milanka index - which tracks the most liquid and highly capitalised stocks - gained a provisional 0.26 percent, or 6.08 percent, to 2,345.91 points.

Commercial Bank of Ceylon Limited gained 5.01 percent to 193.75 rupees a share on foreign and small investor buying.

"Commercial Bank is expected to announce strong third-quarter results," said one broker.

Shares of property developer Ceylinco Seylan Developments Ltd rose 11.54 percent to 7.25 rupees a share and Caltex Lubricants Lanka Ltd ended up by 3.16 percent at 73.50 rupees a share. Total market turnover was 391.0 million rupees with foreign purchases of 35 million rupees and 65 million rupees worth of foreign sales.

Copyright Reuters, 2005