Sri Lankan stockbrokers say the on going trend of net foreign selling, experienced in the Colombo bourse is not a matter to be worried and are confident that it will not continue for long.
“I believe some of the investors are taking profits as it is a good time to do so,” Ravi Abeysuriya, CEO of Candor Equities said.
He said the Fed tapering which came on the 29th of February coupled with the local perception leading up to Geneva Sessions is causing this outflow but remains confident about the local market.
“Those investors will come back in a big way after the market stabilizes”.
From the 30th January to 10th February, foreigners operating in the CSE have sold Rs. 3.8 billion worth of shares and have only purchased Rs. 1.2 billion of shares thus resulting in a net outflow of Rs. 2.6 billion during the said period.
“Investment Funds have been selling down from the emerging markets and we are experiencing a part of that”, said Prashan Fernando, CEO of Acuity Stock Brokers.
“A large outflow is unlikely,” Raja Senanayake, Head of research of Serendib Stock Brokers sounded.
From 30th January to 10th February, foreigners have sold off 10 million shares of JKH, 5.2 million shares of Commercial Bank and 57 million of Dialog shares.
3.9 million shares of Asia Asset and 1.2 million shares of Blue Diamonds have also been sold during this period.
In value terms Rs. 2.291 billions of JKH shares, Rs. 622 million of Commercial Bank shares and Rs. 528 billion of Dialog shares have been sold.
JKH, Dialog and ComBank shares are the three counters which have seen the biggest selling by foreign investors.
‘Despite the flow, you can see the foreign holdings of those shares have not changed much”, a stock analyst , who did not want to be quoted said.
During the reference period foreign holdings of JKH shares have just only gone down to 54.62-pct from 55.64-pct stake held as of 30th January.
In the case of Dialog Axiata, ownership has come down to just 91.28-pct from 91.98-pct.
“We have received over US$ 250 million as net foreign inflow to the CSE during the year 2013 and the little outflow taking place as of now is not an issue for us,” said Nandalal Weerasinghe, Deputy Governor of the Central Bank.
” Foriegn investors are free to take their money and this situation creates opportunities for others, who wants to buy big parcels”, he said.
Stock market players say the local market has strong potential going into the future.
“Local institutions and high net-worth investors are buying those stocks that have been sold, because the potential is there, ” said Ravi Abeysuriya.
Reporting by: Prasanna C. Rodrigo www.news360.lk
“I believe some of the investors are taking profits as it is a good time to do so,” Ravi Abeysuriya, CEO of Candor Equities said.
He said the Fed tapering which came on the 29th of February coupled with the local perception leading up to Geneva Sessions is causing this outflow but remains confident about the local market.
“Those investors will come back in a big way after the market stabilizes”.
From the 30th January to 10th February, foreigners operating in the CSE have sold Rs. 3.8 billion worth of shares and have only purchased Rs. 1.2 billion of shares thus resulting in a net outflow of Rs. 2.6 billion during the said period.
“Investment Funds have been selling down from the emerging markets and we are experiencing a part of that”, said Prashan Fernando, CEO of Acuity Stock Brokers.
“A large outflow is unlikely,” Raja Senanayake, Head of research of Serendib Stock Brokers sounded.
From 30th January to 10th February, foreigners have sold off 10 million shares of JKH, 5.2 million shares of Commercial Bank and 57 million of Dialog shares.
3.9 million shares of Asia Asset and 1.2 million shares of Blue Diamonds have also been sold during this period.
In value terms Rs. 2.291 billions of JKH shares, Rs. 622 million of Commercial Bank shares and Rs. 528 billion of Dialog shares have been sold.
JKH, Dialog and ComBank shares are the three counters which have seen the biggest selling by foreign investors.
‘Despite the flow, you can see the foreign holdings of those shares have not changed much”, a stock analyst , who did not want to be quoted said.
During the reference period foreign holdings of JKH shares have just only gone down to 54.62-pct from 55.64-pct stake held as of 30th January.
In the case of Dialog Axiata, ownership has come down to just 91.28-pct from 91.98-pct.
“We have received over US$ 250 million as net foreign inflow to the CSE during the year 2013 and the little outflow taking place as of now is not an issue for us,” said Nandalal Weerasinghe, Deputy Governor of the Central Bank.
” Foriegn investors are free to take their money and this situation creates opportunities for others, who wants to buy big parcels”, he said.
Stock market players say the local market has strong potential going into the future.
“Local institutions and high net-worth investors are buying those stocks that have been sold, because the potential is there, ” said Ravi Abeysuriya.
Reporting by: Prasanna C. Rodrigo www.news360.lk
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