FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka


Submit PostSubmit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post



Latest topics

» Synergies of possible merger between Sampath Bank and PABC
by CHRONICLE™ Today at 5:42 pm

» Japanese money laundering via PABC Bank raise CB eye brows
by Sstar Today at 3:29 pm

» ACCESS ENGINEERING ( AEL.N )
by ADVENTUS Today at 1:50 pm

» FUTURE of BROWNS INVESTMENT PLC (BIL)
by ONTHEMONEY Today at 12:40 pm

» Prime Lands Residencies Limited (PLR)
by Nandun Today at 10:42 am

» GLAS will be winner with Super Gain.
by SL-INVESTOR Today at 9:14 am

» "MFL" DEAL to 12 RS (multi finance plc)
by sahan8896 Today at 7:48 am

» EXPOLANKA HOLDINGS PLC (EXPO.N0000)
by Captain Yesterday at 11:51 pm

» Growing Fear
by Wickyz Yesterday at 8:15 pm

» Daily Foreign Transactions
by Pradeep90 Yesterday at 7:40 pm

» CONGRATULATIONS TO FINANCIAL CHRONICLE ON THIS 11TH YEAR
by CHRONICLE™ Yesterday at 3:31 pm

» HNB to merge with Seylan Bank?
by reyaz Yesterday at 11:37 am

» There are howmany funds in Sri Lanka?
by reyaz Tue May 04, 2021 4:52 pm

» Positive for BIL
by samaritan Tue May 04, 2021 3:33 pm

» The Introduction of COVID 19 Vaccine and CSE
by Mr. X Tue May 04, 2021 1:22 pm

» HAYLEYS FIBRE PLC (HEXP.N0000)
by samaritan Tue May 04, 2021 1:21 pm

» Next market support level
by celtic tiger Tue May 04, 2021 1:17 pm

» NDB.R An opportunity not to be missed
by stocknoob Tue May 04, 2021 12:56 pm

» Lanka Aluminum
by stockchaser Tue May 04, 2021 11:33 am

» Ban of chemical fertilizers is a great news
by Mr. X Tue May 04, 2021 9:43 am

EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

CHRONICLE™ NEWS PRODUCTS

FINANCIAL CHRONICLE™

Views & Reviews, Analysis, Evaluations, Discussions, Gossip and Hot Tips relating to Sri Lankan companies listed on the Colombo Stock Exchange (CSE)
Contribute




DAILY CHRONICLE™

Latest news and articles published in Newspapers, Websites, Blogs and other online news sites relating to business and investments in Sri Lanka
Contribute



ECONOMIC CHRONICLE™

This is a section that provide news, views, analysis, predications relating to Political and Socio-Economic factors and how such activities affect the Stock Market and other economic activity of the Country.

Contribute




EXPERT CHRONICLE™

This is an exclusive section for Expert Articles which will help member to share knowledge through comments and responses of the members. All members are allowed to reply and make comments to these articles.

Contribute


Submit Post


CHRONICLE™ YouTube

Youtube Videos and other visual presentations relating Stock market and other investment advise submitted by members or other contributors.

Contribute


Submit Post


කොළඔ කොටස් වෙළඳපොළේ වංශකථාව
කොළඔ කොටස් වෙළඳපොළේ ලැයිස්තුගත සමාගම් කොටස් ගැන තොරතුරු¸විශ්ලේෂණ¸සාකච්ඡා¸ කටකතා¸රසකතා යන සියල්ල අපේම සිංහලෙන් කතා කළ හැකි ‘කතා මණ්ඩපය’

Contribute

Twitter Feeds
POPULAR COMPANIES
A

ABANS ELECTRICALS PLC

ACCESS ENGINEERING PLC Hot

ACL CABLES PLC

ACL PLASTICS PLC

ACME PRINTING & PACKAGING PLC

AGSTAR PLC

AITKEN SPENCE HOTEL HOLDINGS PLC

AITKEN SPENCE PLC

ANILANA HOTELS AND PROPERTIES PLC

ARPICO INSURANCE PLC

ASIA ASSET FINANCE PLC

ASIA CAPITAL PLC

B

BAIRAHA FARMS PLC

BALANGODA PLANTATIONS PLC

BIMPUTH FINANCE PLC

BLUE DIAMONDS JEWELLERY WORLDWIDE PLC

B P P L HOLDINGS PLC

BROWNS BEACH HOTELS PLC

BROWNS INVESTMENTS PLC

C

CARGO BOAT DEVELOPMENT COMPANY PLC

CENTRAL INDUSTRIES PLC

CEYLON COLD STORES PLC

CEYLON GRAIN ELEVATORS PLC Hot

CEYLON TEA BROKERS PLC

CEYLON TOBACCO COMPANY PLC

CHEVRON LUBRICANTS LANKA PLC

COLOMBO FORT LAND & BUILDING PLC

COMMERCIAL BANK OF CEYLON PLC

CITRUS LEISURE PLC Hot

COMMERCIAL CREDIT AND FINANCE PLC

D

DANKOTUWA PORCELAIN PLC

DFCC BANK PLC

DIALOG AXIATA PLC

DIALOG FINANCE PLC

DIPPED PRODUCTS PLC

DISTILLERIES COMPANY OF SRI LANKA PLC

DUNAMIS CAPITAL PLC

E

EAST WEST PROPERTIES PLC Hot

EASTERN MERCHANTS PLC

EXPOLANKA HOLDINGS PLC

E-CHANNELLING PLC

F

FIRST CAPITAL HOLDINGS PLC

G

GALADARI HOTELS (LANKA) PLC

GUARDIAN CAPITAL PARTNERS PLC

H

HATTON NATIONAL BANK PLC

HAYLEYS PLC

HAYLEYS FABRIC PLC

HAYLEYS FIBRE PLC Hot

HEMAS HOLDINGS PLC

HIKKADUWA BEACH RESORT PLC

HNB ASSURANCE PLC

HVA FOODS PLC

J

JANASHAKTHI INSURANCE COMPANY PLC

JOHN KEELLS HOLDINGS PLC Hot

JOHN KEELLS HOTELS PLC

L

LANKA ASHOK LEYLAND PLC

LANKA IOC PLC

LANKEM CEYLON PLC

LANKEM DEVELOPMENTS PLC

LAUGFS GAS PLC

LAUGFS POWER LIMITED

LOLC FINANCE PLC

LOLC HOLDINGS PLC

LUCKY LANKA MILK PROCESSING COMPANY PLC

M

MELSTACORP PLC

N

NATIONAL DEVELOPMENT BANK PLC

NATION LANKA FINANCE PLC

NESTLE LANKA PLC

O

ORIENT FINANCE PLC

OVERSEAS REALTY (CEYLON) PLC

P

PANASIAN POWER PLC

PEOPLE'S LEASING & FINANCE PLC

PIRAMAL GLASS CEYLON PLC

PRIME FINANCE PLC

R

RAIGAM WAYAMBA SALTERNS PLC

RENUKA AGRI FOODS PLC

RENUKA CAPITAL PLC

RENUKA HOLDINGS PLC

RICHARD PIERIS AND COMPANY PLC

RICHARD PIERIS EXPORTS PLC Hot

ROYAL CERAMICS PLC

S

SAMPATH BANK PLC

SEYLAN BANK PLC

SIERRA CABLES PLC

SINGHE HOSPITALS PLC Hot

SMB LEASING PLC

SOFTLOGIC HOLDINGS PLC

SOFTLOGIC LIFE INSURANCE PLC

SRI LANKA TELECOM PLC

SWISSTEK (CEYLON) PLC Hot

T

TEEJAY LANKA PLC

TESS AGRO PLC

THREE ACRE FARMS PLC

TOKYO CEMENT COMPANY (LANKA) PLC Hot

U

UNION BANK OF COLOMBO PLC

V

VALLIBEL FINANCE PLC

VALLIBEL ONE PLC Hot

VALLIBEL POWER ERATHNA PLC

W

WASKADUWA BEACH RESORT PLC


You are not connected. Please login or register

FINANCIAL CHRONICLE™ » DAILY CHRONICLE™ » Attractive valuation, policy changes may stabilise Bourse: Asia

Attractive valuation, policy changes may stabilise Bourse: Asia

Go down  Message [Page 1 of 1]

sriranga

sriranga
Co-Admin
Asia Says foreign investors remain net buyers reaping benefits under prevailing valuations

Attractive valuation, policy changes may stabilise Bourse: Asia Emergi10

Asia Wealth Management believes attractive valuations coupled with policy changes could stabilise the year to date 20% negative Colombo stock market as foreigners seize opportunities.

It said activities in the market last week were led by foreign investors while local institutional investors stayed sidelined.

At the same time a significant absence of local retail investors was witnessed due to lost confidence over the market and soaked liquidity due to lower portfolio values and limited availability of broker credit.

However, long prevailed sentiments over the accumulation of fundamental stocks by foreign investors extended to this week, realising a significant foreign inflow.

The week saw foreign purchases amounting to Rs. 823.8 million, whilst foreign sales amounted to Rs. 459 million, resulting in a net inflow Rs. 364.8 million.

“We witnessed a number of crossing transactions taking place on John Keells Holdings, Ceylon Tobacco, Sampath Bank, and Hatton National Bank. These transactions shed light on the future prospects of the Bourse, despite volatility over policy reforms and interest rates,” Asia said.

Total turnover for the week amounted to Rs. 1.8 billion out of which 34% was realised via block trades on aforementioned counters and total volume of shares traded for the week was 83.7 million. Furthermore, PCH Holdings, Dialog Axiata, Free Lanka Capital Holdings, John Keells Holdings, Panasian Power and Blue Diamonds (non-voting) topped the list in terms of volume during the week.

Market capitalisation stood at Rs. 1,856 billion, a dip of -1.5% WoW. The YTD performance was down 20.1%. Asia also said the ASI showed faint signs of stabilising within a low turnover framework towards the end of the week.

This partly indicates relative valuation of the market reaching attractive levels compared to regional peers. Colombo bourse is currently trading at a market P/E of 11.4 times which is 28.5% discount to India which is trading at 14.7 times.

“In this backdrop, coupled with the fact that South Asian economies tend to share fairly similar composition of economic risks and comparative advantages, we expect foreign involvement in Colombo bourse to increase keeping in line with regional trends,” Asia said.

Foreign share in Sri Lanka’s stock market turnover has remained in the range of 25% to 30% within the past three years, which is at present 10%-15%, well below the historical average. It further illustrates that relatively lower foreign participation in the market is likely to correct in the medium term.

The sectors to keep an eye on would be diversified, hotels and travels, banking and finance and healthcare, considering the interest shown by investors and the relative advantages the sectors share within the present global and domestic economic conditions.

Attractive valuation, policy changes may stabilise Bourse: Asia Sd110

Furthermore, the decision taken by the Central Bank of Sri Lanka to allow free transfer of funds from NRFC accounts will make capital flows into Sri Lanka more receptive towards country’s interest rate. This would make regional interest rates more comparable with that of Sri Lanka given that now there are no external factors to consider for the creditors other than the prospective yield in deciding the optimum destination within the region.

Hence, Sri Lanka is now in a position to benefit from her comparatively higher interest rates, which was earlier dampened by nonmarket regulations of flow of funds through NRFC accounts. The move will increase the effectiveness of interest rates as a tool to attract more foreign capital into the economy and hence, would assist to stabilise the rupee value against internationally traded currencies.

“It is likely to increase capital availability of private sector and in turn would possibly drive down interest rates in the medium term. The Government may take further steps to increase the threshold limit applicable for foreigners when investing in Government securities from the current level of 12.5 per cent with the aim of attracting more foreign inflows to the economy. The overall impact of these developments on future of Sri Lanka’s equity trade may prove to be constructive given that they may assist to wither off any undue pressure on the Bourse if external situation of the economy turns further negative,” Asia Wealth Management said.

With both buyers and sellers largely sitting in the wings, as we head further into the third quarter, DNH Financial expects market activity to remain relatively restrained in the near term.

“However we expect momentum to gather steam in the medium to longer term with a break to the upside from the relatively sideways flag that we have been experiencing so far. Consequently, we view the current market environment as an opportunity for investors to clean their books, re-align their portfolios and reposition themselves with a flight to quality,” it said.

DNH Financial also advises investors to break away from the herd, maintain a healthy investment horizon and focus on companies that will deliver quality earnings despite high interest rates.

“We further advise investors against seeking speculative positions but focusing on quality companies that will generate double digit returns over a reasonable investment horizon,” the broker said.

Given the twin impact of the rise in oil prices and high interest rates, it advises investors to carefully analyse the cost and capital structure of companies before considering investment avoiding those that may have high energy costs (and are unable to successfully pass on price increases to consumers) and are overly leveraged as such companies may experience margin erosion both at the operating and net level.

“We reiterate the need to consequently focus on cash rich companies that will benefit fully from the domestic consumption cycle,” DNH Financial said.
http://www.ft.lk/2012/08/13/attractive-valuation-policy-changes-may-stabilise-bourse-asia/

http://sharemarket-srilanka.blogspot.co.uk/

Slstock

Slstock
Director - Equity Analytics
Director - Equity Analytics


Attractive valuation, policy changes may stabilise Bourse: Asia


Says foreign investors remain net buyers reaping benefits under prevailing valuations

Asia Wealth Management believes attractive valuations coupled with policy changes could stabilise the year to date 20% negative Colombo stock market as foreigners seize opportunities.
It said activities in the market last week were led by foreign investors while local institutional investors stayed sidelined.


Attractive valuation, policy changes may stabilise Bourse: Asia Emergi11

At the same time a significant absence of local retail investors was witnessed due to lost confidence over the market and soaked liquidity due to lower portfolio values and limited availability of broker credit.
However, long prevailed sentiments over the accumulation of fundamental stocks by foreign investors extended to this week, realising a significant foreign inflow.
The week saw foreign purchases amounting to Rs. 823.8 million, whilst foreign sales amounted to Rs. 459 million, resulting in a net inflow Rs. 364.8 million.

“We witnessed a number of crossing transactions taking place on John Keells Holdings, Ceylon Tobacco, Sampath Bank, and Hatton National Bank. These transactions shed light on the future prospects of the Bourse, despite volatility over policy reforms and interest rates,” Asia said.
Total turnover for the week amounted to Rs. 1.8 billion out of which 34% was realised via block trades on aforementioned counters and total volume of shares traded for the week was 83.7 million. Furthermore, PCH Holdings, Dialog Axiata, Free Lanka Capital Holdings, John Keells Holdings, Panasian Power and Blue Diamonds (non-voting) topped the list in terms of volume during the week.
Market capitalisation stood at Rs. 1,856 billion, a dip of -1.5% WoW. The YTD performance was down 20.1%. Asia also said the ASI showed faint signs of stabilising within a low turnover framework towards the end of the week.

This partly indicates relative valuation of the market reaching attractive levels compared to regional peers. Colombo bourse is currently trading at a market P/E of 11.4 times which is 28.5% discount to India which is trading at 14.7 times.
“In this backdrop, coupled with the fact that South Asian economies tend to share fairly similar composition of economic risks and comparative advantages, we expect foreign involvement in Colombo bourse to increase keeping in line with regional trends,” Asia said.


Attractive valuation, policy changes may stabilise Bourse: Asia Sd110
Foreign share in Sri Lanka’s stock market turnover has remained in the range of 25% to 30% within the past three years, which is at present 10%-15%, well below the historical average. It further illustrates that relatively lower foreign participation in the market is likely to correct in the medium term.
The sectors to keep an eye on would be diversified, hotels and travels, banking and finance and healthcare, considering the interest shown by investors and the relative advantages the sectors share within the present global and domestic economic conditions.
Furthermore, the decision taken by the Central Bank of Sri Lanka to allow free transfer of funds from NRFC accounts will make capital flows into Sri Lanka more receptive towards country’s interest rate. This would make regional interest rates more comparable with that of Sri Lanka given that now there are no external factors to consider for the creditors other than the prospective yield in deciding the optimum destination within the region.
Hence, Sri Lanka is now in a position to benefit from her comparatively higher interest rates, which was earlier dampened by nonmarket regulations of flow of funds through NRFC accounts. The move will increase the effectiveness of interest rates as a tool to attract more foreign capital into the economy and hence, would assist to stabilise the rupee value against internationally traded currencies.
“It is likely to increase capital availability of private sector and in turn would possibly drive down interest rates in the medium term. The Government may take further steps to increase the threshold limit applicable for foreigners when investing in Government securities from the current level of 12.5 per cent with the aim of attracting more foreign inflows to the economy. The overall impact of these developments on future of Sri Lanka’s equity trade may prove to be constructive given that they may assist to wither off any undue pressure on the Bourse if external situation of the economy turns further negative,” Asia Wealth Management said.
With both buyers and sellers largely sitting in the wings, as we head further into the third quarter, DNH Financial expects market activity to remain relatively restrained in the near term.
“However we expect momentum to gather steam in the medium to longer term with a break to the upside from the relatively sideways flag that we have been experiencing so far. Consequently, we view the current market environment as an opportunity for investors to clean their books, re-align their portfolios and reposition themselves with a flight to quality,” it said.
DNH Financial also advises investors to break away from the herd, maintain a healthy investment horizon and focus on companies that will deliver quality earnings despite high interest rates.
“We further advise investors against seeking speculative positions but focusing on quality companies that will generate double digit returns over a reasonable investment horizon,” the broker said.
Given the twin impact of the rise in oil prices and high interest rates, it advises investors to carefully analyse the cost and capital structure of companies before considering investment avoiding those that may have high energy costs (and are unable to successfully pass on price increases to consumers) and are overly leveraged as such companies may experience margin erosion both at the operating and net level.
“We reiterate the need to consequently focus on cash rich companies that will benefit fully from the domestic consumption cycle,” DNH Financial said.

http://www.ft.lk/2012/08/13/attractive-valuation-policy-changes-may-stabilise-bourse-asia/

K.Haputantri

K.Haputantri
Co-Admin
Thanks slstock for sharing the article from FT. At last, wiser counsels have prevailled over FT approach to reporting. They should continue this trend without being a mouth piece to some unethical eliments.

Redbulls

Redbulls
Director - Equity Analytics
Director - Equity Analytics
Duplicated Post.
http://forum.srilankaequity.com/t21330-attractive-valuation-policy-changes-may-stabilise-bourse

Slstock

Slstock
Director - Equity Analytics
Director - Equity Analytics
Topics merged.

Sponsored content


Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum