COLOMBO, Dec 7 (Reuters) - Sri Lanka's stock market slipped on Tuesday for a second day due to low credit for retail investors amid concern over the phasing out of margin trading by mid next year, but large crossings boosted the trading volume.

 The main share index .CSE fell 37.22 points or 0.57 percent to 6,469.08. Asia's best performer in 2010 has gained 91.1 percent, ahead of second-ranked Indonesia's .JKSE 46.9 percent.

 The bourse is trading at a forward price-to-earnings ratio of 20.3, the highest in Asia, compared with all-Asia's 13.2 and global emerging markets' 12.2, Thomson Reuters StarMine data showed.

 The CSE's 14-day relative strength index is at 46.7, between the lower and upper neutral limit of 30 and 70.

 The bourse saw trading volume of 192.5 million shares on Tuesday, against average volume of 101.3 million and 50.8 million in the past five and 30 days, respectively. The 90-day average volume is 69.9 million.

 Foreign investors have sold a net 24.5 billion rupees in shares this year, and on Tuesday sold a net 280.5 million.

 Turnover was 3.4 billion rupees ($10.6 million), nearly six times the 2009 daily average of 593.6 million rupees mainly due to block trading in Lanka Hospitals LHCL.CM and Seylan Bank SEYB.CM, traders said.

 The rupee LKR= closed firmer at 111.12/15 a dollar from Monday's 111.15/18 on banks selling dollars, currency dealers said.

 FACTORS TO WATCH:

•  SEC moves to increase market liquidity [ID:nL3E6N70AF]

• Moves by the central bank to curb rising inflation

• Whether forex control relaxation will attract more foreign buying in shares or corporate debentures

• Extent of the rupee's rise and how the central bank might ease appreciation pressure [ID:nSGE6AM0AB]

source - www.reuters.com