Sri Lankan stocks rose to a fourth consecutive life closing high on Tuesday on heavy buying in select shares after two companies announced rights issues and a third launched a bonus issue, brokers said. The key Colombo all-share index rose a provisional 0.9 percent, or 15.27 points, to 1,716.71 points. The index closed at a previous all time closing high of 1,701.4 points on Monday.
The bourse has gained almost 14 percent so far this year on hopes for upbeat earnings for the third quarter ending December 31, due for release in the coming weeks and gains in construction stocks expected to benefit from post-tsunami rebuilding.
The index was also boosted by news last week that top US pension fund the California Public Employees Retirement System (Calpers) may invest in the bourse.
The Milanka index - which tracks the most liquid and highly capitalised stocks - rose a provisional 0.31 percent, or 7.49 points, to 2,388.06 points.
Ceylon Guardian Investment Trust Ltd rose 12.55 percent to 269 rupees after announcing a one-for-three rights issue.
Ceylon Investment Co Ltd rose 24.43 percent to 163 rupees also after announcing a one-for-three rights issue.
The announcements boosted the Investment Trust index, pushing it up 15.78 percent, or 1,446.71 points, to 10,612.57 points.
"The market went up mainly because of Ceylon Guardian and Ceylon Investment rights issues," said one broker.
ACL Cables Ltd rose 4.0 percent to 97.25 rupees after the company declared a bonus issue of two new shares for every nine shares held.
Parliament on Tuesday rubber-stamped a share trading levy of 0.2 percent on turnover of transactions, announced in the 2005 budget, which replaces value added tax and income tax on bourse trades. The market had already priced-in the new tax.
The government expects the new levy to bring in 450 million rupees per year to state coffers.
Total market turnover was above average at 623.1 million rupees, with foreign sales of 119 million rupees and foreign purchases of 167 million rupees.