* Profit-taking drives down bourse amid pre-IPO selling
* Foreigners sell 88.3 mln rupees worth shares on net basis
* Rupee up on exporter dlr conversion, dlr falling globally
COLOMBO, June 7 (Reuters) - Sri Lanka's stock market fell on Tuesday on retail profit-taking with speculative trade in Hunter and Company boosting the day's trading volume and turnover, while the rupee edged up on heavy exporter dollar sales.
Illiquid hardware importer Hunter and Company plummeted 40 percent on large block deals, which analysts attributed to speculation.
Sri Lanka's main share index closed 0.83 percent or 60.89 points weaker at 7,294.54, its lowest since May 11.
Traders said there was selling pressure as investors cashed in to have funds ready for the upcoming Softlogic initial public offering, which opens for subscription on Thursday.
Traded volume was 513.9 million, against a five-day average of 313.9 million. The 30-day and 90-day average trading volumes were 127.1 million and 98 million respectively. Last year's daily average was 67.9 million.
Foreign investors were net sellers of 88.3 million rupees' worth of shares on Tuesday, ending four straight gains and they have sold a net 6.37 billion rupees worth shares in 2011 after a record 26.4 billion in 2010.
The day's turnover was 4.17 billion Sri Lanka rupees ($38.06 million), well above last year's average of 2.4 billion and this year's daily average of 2.9 billion.
The bourse is still Asia's best performer in 2011 with an 9.93 percent gain, after bringing in the region's top return of 96 percent last year.
The rupee closed firmer at 109.50/60 a dollar from Monday's 109.65/70 on exporter dollar sales as the greenback has softened after weak U.S. economic data last week, dealers said.
FACTORS TO WATCH:
- If foreign investors buy shares in large volumes
- If Sri Lanka can achieve an 8.5 pct growth target amid rising global oil prices and inflation
- March quarter corporate results
source - www.reuters.com
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