Banks prop Bourse

Reuters: Stocks edged up from a two-month low on Wednesday as investors picked up battered banking shares, but foreign investors were net sellers on worries about the economy.

The main share index rose 0.09% to 5,674.47.

“Local interest in the banking sector pushed the market up while foreigners were on the selling side,” said a stockbroker who declined to be identified.

Commercial Bank of Ceylon, which after the market closed posted a 22.3% gain in its December quarter net profit, rose 1.4%.

Foreign investors sold a net Rs. 107.18 million worth of shares, extending the net foreign outflow so far this year to Rs. 194.82 million.

Turnover was Rs. 623.04 million, well below this year’s daily average of Rs. 1.05 billion. The rupee ended steady at 127.47/50 to the dollar as dollar inflows to Government bonds and equity markets offset importer dollar demand, dealers said.