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Message: <blockquote data-quote="lkdood" data-source="post: 11360506" data-attributes="member: 92282">* Investors stay out; turnover, volume down    * Foreign outflow at 29.4 million rupees    * Rupee steady amid importer dollar demand    Sri Lanka's stock market fell to a 26-month low on Monday led by blue chips due to negative sentiment created by a controversial assets acquisition bill, and investor hesitation ahead of next week's budget presentation.     The main share index ended 1.47 percent, or 92.95 points weaker at 6,239.52 ,lowest since Sep 15, 2009.     Sri Lanka's parliament on Wednesday passed legislation that will allow the government to acquire properties of 37 enterprises, including from two listed firms, it deems underperforming or underutilised.          Analysts said investors were confused about the legislation which they said would further hurt long-term institutional investor sentiment. Moody's Investors Service on Monday said the law would hit sentiment and was potentially credit-negative.         The bourse halted trading for a second day in shares of Properties of Pelwatte Sugar Industries and Hotel Developers Lanka Plc, both of which were listed in the bill.          Hotel Developers informed the bourse in a statement the assets of the company are now vested in the government of Sri Lanka and all shares are being held by the treasury secretary.      "At this moment, we are not in a position to comment on the impact of the said legislation on the company and its shareholders, as we await instructions from the secretary to the treasury," it said.     On Friday, Pelwatta said they are unable to comment on the implications. Shares in Pelwatte Sugar have fallen 15.5 percent and those of Hotel Developers Lanka have dropped 27.1 percent since the market first got wind of the proposed bill on Nov. 1.         The day's turnover was 518.7 million Sri Lanka rupees ($4.7 million), well below last year's average of 2.4 billion and this year's 2.5 billion.         Total volume was 43.1 million shares, highest since Nov. 3, against a five-day average of 27.2 million. The 30-day and 90-day average trading volumes were 61.1 million and 102 million. Last year's daily average was 67.9 million.              Analysts said investors were also concerned about future regulation of the market after removal of the Securities and Exchange Commission director general.     The bourse has fallen 8 percent since Oct. 1. It fell to Asia's eight-best performer with a year-to-date loss of 6 percent after being on the top for most of 2011 and in 2009 and 2010.         The bourse saw a net foreign outflow of 29.4 million rupees on Monday, but thus far in 2011, offshore investors have sold 16.5 billion, and a record 26.4 billion in 2010.         Losers outnumbered gainers by 175 to 34 on Monday, Thomson Reuters data showed.              The rupee closed flat at 110.18/20 per dollar as a state bank sold dollars at 110.20 rupees despite importer demand for dollars, dealers said.<img src="http://upload.wikimedia.org/wikipedia/en/thumb/e/e2/Reuters_logo.svg/100px-Reuters_logo.svg.png" alt="" class="fr-fic fr-dii fr-draggable " style="" /></blockquote>

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