COLOMBO, March 28 Foreign investors pulled out
from the Sri Lankan bourse in heavy volume on Friday, a day
after a U.N. resolution approved an international probe into the
island nation's war crimes.
The bourse saw a net foreign outflow of 2.77 billion rupees
($21.19 million) worth of shares, the highest single-day outflow
since Feb. 6, extending the net foreign outflow so far this year
to 6.9 billion rupees.
"Investors are a bit more worried about the economic impact
and growth due to the resolution," a stockbroker said on
condition of anonymity.
The United Nations on Thursday launched an inquiry into war
crimes allegedly committed by both Sri Lankan state forces and
Tamil rebels during the conflict that ended in 2009, saying the
government had failed to investigate properly.
Sri Lankan stocks fell on Friday from a more-than-five-week
high hit in the previous session, led by large-cap shares. The
main stock index ended 0.34 percent, or 20.45 points,
weaker at 5,972.17.
Analysts said the outcome of the resolution was expected,
but investors sentiment has been dented over concerns it could
hurt the country's economy. Several potential buyers of risky
assets are awaiting a clear direction.
Two stockbrokers said a foreign fund sold 12.5 million
shares of conglomerate John Keells Holding PLC on
Friday. The stock still ended up 0.99 percent at 225 rupees.
Top contributors to the day's fall were Ceylon Tobacco
Company PLC, which fell 2.92 percent, and Ceylinco Insurance PLC
, which fell 5.14 percent.
Turnover was 3.29 billion rupees, the highest since Feb. 6
and more than thrice of this year's daily average volume.
($1 = 130.7000 Sri Lanka rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil