By Hiran H.Senewiratne
"Many foreign investors are currently buying undervalued, good local stocks that have a future market potential in emerging and frontier markets. Therefore, the Colombo Stock Exchange (CSE) is becoming a popular investment destination for such investors, Colombo Stock Brokers Association (CSBA) president Ravi Abyesuriya said.
"At this juncture the CSE is not moving to the expected level and most local retail investors are not active in the market. However, foreign investors who are mainly investing in emerging and frontier markets, like Sri Lanka, are now a main visible factor, Abeysuriya told The Island Financial Review yesterday.
He said foreign investors are using the current opportunity to the maximum while Sri Lankan investors are merely looking at the market without buying such undervalued stocks. "Therefore, it indicates the net foreign inflow has increased considerably, which is a great indication that foreign investors are more active than the local investors, he elaborated.
"At present, locals do not a see that the market is moving or growing but the industry has great potential to grow as we have a lot of catching up to do when compared to our regional peers, he added.
"Due to market fluctuations, we see the small retailers panicking, whereas the foreign investors are quite positive and they are making use of the opportunity to the maximum under this scenario. Therefore, with the current government economic policies we could anticipate real growth in the market, Abyesuriya explained.
CSE's Head of Market Development, Niroshan Wijesundera told The Island Financial Review that where foreign investors are concerned they are more active than local retail investors.
He said that that from August 1 to September 15, net foreign inflow was Rs 2.3 billion, which is a positive development where the CSE is concerned.
Marketing Manager, Candor Equities Limited Buddhika Payoe said yesterday that the market's foreign investor activities seem to be very strong as they were on the buying side, while the local retail investor market sentiment is quite low due to rumoured political developments, the VAT issue and many more factors.
Yesterday, the CSE recorded a turnover of Rs 459 million, while the All Share Price Index went down by 20.50 points and the Sand P SL 20 by 4.87 points. "When we study yesterday's market it is clear that foreign investor participation is significant due to poor local investor behaviour, he said.
The main contributors to yesterday's turnover were, Distilleries Rs 90.8 million, HNB Rs 55.6 million and Textured Jersey Rs 44.7 million. These were heavily traded stocks with good market potential, which have been bought by foreign investors, Payoe said. The number of shares traded yesterday were 34,209,933.
Meanwhile JKSB said of yesterday’s CSE trading:
ASPI: 6,429.94 (-20.50 pts; -0.32%); Val T/O: Rs. 459mn (US$3.15mn); Vol T/O: 34.2mn; Trades: 4,737
Advance/decline ratio: 62/111 ; Top gainer: MSL.N (+16.19%); Top loser: JKH.W (-41.38%)
Highlights:
• The ASPI ended lower amid subdued market turnover. Selected banking, food & beverage, manufacturing, diversified, and finance counters led activity levels with trading in DIST accounting for 20% of turnover for the day.
"Many foreign investors are currently buying undervalued, good local stocks that have a future market potential in emerging and frontier markets. Therefore, the Colombo Stock Exchange (CSE) is becoming a popular investment destination for such investors, Colombo Stock Brokers Association (CSBA) president Ravi Abyesuriya said.
"At this juncture the CSE is not moving to the expected level and most local retail investors are not active in the market. However, foreign investors who are mainly investing in emerging and frontier markets, like Sri Lanka, are now a main visible factor, Abeysuriya told The Island Financial Review yesterday.
He said foreign investors are using the current opportunity to the maximum while Sri Lankan investors are merely looking at the market without buying such undervalued stocks. "Therefore, it indicates the net foreign inflow has increased considerably, which is a great indication that foreign investors are more active than the local investors, he elaborated.
"At present, locals do not a see that the market is moving or growing but the industry has great potential to grow as we have a lot of catching up to do when compared to our regional peers, he added.
"Due to market fluctuations, we see the small retailers panicking, whereas the foreign investors are quite positive and they are making use of the opportunity to the maximum under this scenario. Therefore, with the current government economic policies we could anticipate real growth in the market, Abyesuriya explained.
CSE's Head of Market Development, Niroshan Wijesundera told The Island Financial Review that where foreign investors are concerned they are more active than local retail investors.
He said that that from August 1 to September 15, net foreign inflow was Rs 2.3 billion, which is a positive development where the CSE is concerned.
Marketing Manager, Candor Equities Limited Buddhika Payoe said yesterday that the market's foreign investor activities seem to be very strong as they were on the buying side, while the local retail investor market sentiment is quite low due to rumoured political developments, the VAT issue and many more factors.
Yesterday, the CSE recorded a turnover of Rs 459 million, while the All Share Price Index went down by 20.50 points and the Sand P SL 20 by 4.87 points. "When we study yesterday's market it is clear that foreign investor participation is significant due to poor local investor behaviour, he said.
The main contributors to yesterday's turnover were, Distilleries Rs 90.8 million, HNB Rs 55.6 million and Textured Jersey Rs 44.7 million. These were heavily traded stocks with good market potential, which have been bought by foreign investors, Payoe said. The number of shares traded yesterday were 34,209,933.
Meanwhile JKSB said of yesterday’s CSE trading:
ASPI: 6,429.94 (-20.50 pts; -0.32%); Val T/O: Rs. 459mn (US$3.15mn); Vol T/O: 34.2mn; Trades: 4,737
Advance/decline ratio: 62/111 ; Top gainer: MSL.N (+16.19%); Top loser: JKH.W (-41.38%)
Highlights:
• The ASPI ended lower amid subdued market turnover. Selected banking, food & beverage, manufacturing, diversified, and finance counters led activity levels with trading in DIST accounting for 20% of turnover for the day.
• Banks, Finance, & Insurance was the most actively traded sector (-0.24%)
• Stores & Supplies was the best performing sector (+1.89%), supported by gains on EBCR (+3.99%)
• Motors was the worst performing sector (-3.50%), dragged down by a decline in UML (-2.90%)
• Motors was the worst performing sector (-3.50%), dragged down by a decline in UML (-2.90%)
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