Sri Lankan stocks fell on Friday from a two-month high on foreign selling and profit-taking after a gain of 1.9 percent in the previous two sessions, while a delay in the appointment of a new regulator also weighed on the market, dealers said. The Colombo Stock Exchange's main index edged down 0.5 percent, or 25.31 points, to 5,012.84, from its highest level since June 21.
The market saw the first foreign outflow in 25 days with offshore investors selling a net 63.66 million Sri Lankan rupees ($481,000) worth of shares. They have been net buyers of 28.3 billion rupees this year. Stockbrokers said concern over a delay in the appointment of a new head for the Securities and Exchange Commission trimmed turnover with many investors on the sidelines, expecting some clue on direction from a new SEC chief.
After the market closed, P. B. Jayasundera, Finance Ministry secretary, told Reuters that a new appointment would be made next week. Shares in market heavyweight John Keells Holdings fell 1.91 percent to 195.20 rupees. The day's turnover of 265.7 million rupees was less than a third of this year's daily average of 857 million rupees. The market has fallen 17.48 percent this year. The rupee ended slightly firmer at 132.25/30 against the dollar from 132.28/35 the previous day in dull trade, as banks sold dollars.