SHANGHAI'S stock index yesterday rose for a third straight trading day and closed above 2,000 points as gains by pharmaceutical firms and medical device makers offset the fall by financial counters.

The Shanghai Composite Index rose 11.32 points, or 0.57 percent, to 2,006.56.

Market observers said investors have shifted their focus to companies which are set to release half-year reports this month and in August.

The gross profit of 939 firms listed on the Shanghai and Shenzhen bourses may gain 0.73 percent in the second quarter from a quarter earlier, the Shanghai Securities News said.

Drug makers were among the biggest gainers. Zhejiang Huahai Pharmaceutical Co surged 9 percent to 17 yuan. Tianjin Zhongxin Pharmaceutical Group Corp Ltd jumped 6.4 percent to 13.99 yuan.

Shinva Medical Instrument Co gained among medical device makers, rising 4 percent to 46.74 yuan as Industrial Securities said the company's profit may soar over 40 percent next year after acquiring Shanghai Uniwin Pharmaceutical Machinery Co.

The Industrial Bank Co lost 2.3 percent to 14.28 yuan and China Minsheng Banking Corp fell 1.3 percent to 8.48 yuan.