The main All Share Price Index closed up 5.08 percent (255.15 points) at 5,278.95, while the more liquid Milanka index rose 4.10 percent (179.32 points) to close at 4,552.94.
Turnover was 1.2 billion rupees, according to stock exchange provisional figures.
Brokers said companies which had reported lower earnings and illiquid stocks shot up.
The Good Hope, a high-priced share, rose almost 25 percent or 235.20 rupees to end at 1,186.20 rupees on just one transaction of 100 shares.
Colombo Pharmacy rose 218.60 rupees to 763.60 rupees. Cargills which reported lower December 2011 quarter profits, rose 2.
50 rupees at 167.50 rupees on two trades of just 200 shares.
Browns Investments ended at 3.60 rupees, up 40 cents.
Index heavyweight John Keells Holdings closed at 163 rupees, up 3.
50 while Commercial Bank closed at 100 rupees, up 10 cents.
Ceylon Tobacco rose 25.50 to close at 497.50 rupees with 1,100 shares traded.
Ceylon Tea Services rose 64.70 rupees to 600.00 rupees. Alliance Finance Company rose 132.
50 rupees to close at 648.50 rupees.
Update II
People's Leasing Company, which fell to a record low of 11.60 rupees and recovered Wednesday, on Thursday closed at 12.
60 rupees, up 60 cents.
Agstar Fertilizers non-voting shares were the second highest gainers, closing at 15 rupees, up nine while its voting stocks were the next highest gainer, closing at 17.
90 rupees, up 8.90.
Environmental Resources Investments were the most actively traded stocks, closing at 19 rupees, up 3.60.
HVA Foods were also heavily traded, closing at 21.10 rupees, up 3.40.
Nation Lanka Finance W0021 warrants were the biggest gainers and third most actively traded shares closing at 3.
20 rupees, up 2.90.