The All Share Price Index closed 1.73 percent higher at 5,592.03, gaining 95.18 points during the day. The Milanka Price Index of more liquid stocks closed 155.48 points higher, up 3.05 percent to 5,248.84. The S&P SL20 closed at 3,026.50, up 1.43 percent, a gain of 42.69 points during the day.
Foreign buying amounted to Rs. 166.7 million, selling Rs. 127.89 million.
"Retail buying interest centred mainly on speculative second tier counters continued to drive the indices sharply higher. Turnover levels remained above the Rs. 1bn mark for a third consecutive trading day," John Keells Stockbrokers said.
"Turnover jumped to Rs. 1.89 billion with parcels of HVA Foods and Environmental Resources Investments changing hands and accounting for 11 percent of the day’s total.
Amongst the gainers for the day included Ceylon Printers, Tea Smallholder Factories and HVA Foods which rose by 50.0%, 31.3% and 27.0% offsetting declines in Good Hope, EB Creasy and Janashakthi Insurance which lost 16.1%, 8.2% and 6.3% respectively," DNH Financial said.
"From a purely PE valuation point of view, the Sri Lanka bourse is neither expensive nor cheap; the bourse appears cheap considering its historical PE levels, but somewhat expensive relative to other frontier/emerging markets. However, on an all important Price to Growth (PEG) basis, the market remains attractive both on historical as well as peer comparison," it said.
"Technically the markets have closed almost at the day’s highs indicating the inherent strength in the current rally. If we look at the hourly charts the markets opened with a gap consolidated for a while and then exploded. The rally has been broad based and 5,620 is the immediate resistance level and above that the next resistance level comes at 5,800," Bartleet Religare Securities said.