Shares up as investors snap up battered stocks

REUTERS - Sri Lankan stocks were trading firmer yesterday, heading for a third straight session of gains, as investors bought into some select battered shares after recent falls. The main stock index was trading up 0.59 percent at 7,316.33 at 0619 GMT, moving further away from its lowest close since July 23 hit on Tuesday.

The index had lost 3.2 percent in the two sessions through Tuesday as foreign investors sold off risky assets on fears of a China-led global economic slowdown, and on selling by retail investors for month-end settlements. “Some recovery is taking place, but not at full scale,” said Dimantha Mathew, a research manager at First Capital Equities (Pvt) Ltd. “There is selective buying of some of the stocks that fell sharply