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

» A Strong bounce back of ASI is on the cards
by Equityinvestor Today at 10:09 pm

» Prominent Investors of the colombo stock market
by Walbaba Today at 9:09 pm

» GLAS will be winner with Super Gain.
by Promoney Today at 3:41 pm

» Many positives for Next week
by Vishwanarth Today at 12:29 pm

» Norway -> biggest shareholder of NDB
by Vishwanarth Today at 12:28 pm

» Maldives records over 100,000 tourist arrivals in first 35 days of the year
by samaritan Today at 9:59 am

» Kind of behavior traders engage in when they are frustrated and want their money back from the market. Stock market for beginners
by lal62 Today at 7:40 am

» EXPO EXPO EXPO
by Gowri123 Today at 12:35 am

» still I believe this
by 100Bill Yesterday at 9:21 pm

» SUNSHINE HOLDINGS PLC (SUN.N0000)
by ErangaDS Yesterday at 8:19 pm

» Investor sentiment - will there ever be a recovery?
by xhunter Yesterday at 7:49 pm

» Let's have a stop-loss strategy to maximize investment returns in stock market
by EquityChamp Yesterday at 7:19 pm

» Daily Foreign Transactions
by Pradeep90 Yesterday at 6:56 pm

» DIPD/HAYC/HAYL
by samaritan Yesterday at 5:41 pm

» කොටස් මිල දී ගන්න මෙය හොඳම කාලයයි – රාජ්‍ය අමාත්‍ය කබ්රාල්
by samaritan Yesterday at 5:07 pm

» IS it right time to stick to warren buffett's most famous saying ???
by Mr. X Yesterday at 4:02 pm

» CSE - The World's best performer!
by Vishwanarth Yesterday at 2:42 pm

» Best Broker
by Wickyz Yesterday at 2:32 pm

» Game Changed! SUPER GREEN
by Karthick Yesterday at 12:24 pm

» Blue Diamond
by thavam_Eu Yesterday at 12:07 pm

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™ » Sri Lanka still the territory of frontier market specialists

Sri Lanka still the territory of frontier market specialists

Go down  Message [Page 1 of 1]

sriranga

sriranga
Co-Admin
Open for discussion.

Feb 28, 2013 (LBO) - Sri Lanka is still the territory of a small group of specialist investors being relatively unknown and with only a few companies of a sufficient size and liquidity, frontier market investors said.

Brad West, a long time Asian frontier market investor who is now chief operating officer of CAL Partners, which was set up with Sri Lanka's Capital Alliance group says larger funds find it difficult to enter Sri Lanka.

"The eligible investor looking at Sri Lanka's listed market today is a very tiny part of the global equity investor community," he told a forum of senior executives at the LBR-LBO Chief Financial Officers Forum in Colombo.

"He or she is a frontier specialist."

He said in a typical Asian emerging market fund about 10 percent may be allocated to frontier markets.

West said a frontier market fund would take a position of about million dollars in a fund, whereas in an emerging market fund it was about 10 million dollars. In a global fund the position would be larger.

West said foreign funds would not want to hold more than 9.9 percent of a company because owners of the fund would want board representation and if something went wrong the fund managers could be sued.

"He does not want to own more than three days worth of trades," West said. "So you work it all out and Holy Cow you can’t buy a lot of companies."

Lloyd Fisher, another emerging markets investor said Sri Lanka only had a few companies with over a billion US dollars in market cap, though a few had over 500 million US dollars.

Foreign investors did not want to buy into companies whose stock moved up sharply the moment they started to take a position, he said.

They also wanted liquidity to exit when they wanted. Very few companies in Sri Lanka fit the bill he said. Fisher said he had been investing in Sri Lanka for about a year.

"Foreign investors look for corporate governance, transparency, clear and understandable regulations," he said. "It sound clichés it but it is not difficult to achieve."

They said conditions in Malaysia in the early 1990s and Singapore in the 1980s were somewhat similar to Sri Lanka.

Fisher said investors looked at transaction costs, including brokerage, custodial fees, and foreign exchange conversion costs.

West said frontier market investors had to be patient, and could not do quick trades because transactions costs could be up to 4 percent in a frontier market compared to half that in a more advanced market.

In Sri Lanka's last market boom, fired by low interest rates and margin credit many foreign investors made the right call and exited. They are now coming back.

West said when he first went to Malaysia there were hardly any foreigner and it was a 'fly-over' territory. He said Sri Lanka was somewhat in similar.

"In a year or two from now you've got to land here," he said. "And guess what? It is a cleaner place. A safer place, the quality of life is higher. People are smart."

Other analysts however have said that Malaysia and Singapore have had the basics right including good monetary, fiscal policy and rule of law. In Sri Lanka however though a 30-year war ended concerns are rising and nationalism is on the rise.

But West said believed Sri Lanka could make it.

"Today people who come here are on the way to Dhaka, to Karachi. That is the frontier market routine," he said.

"We want to be in the route where you go to Singapore for a couple days, go you go KL. Then you come here, and finish your trip in Mumbai and go back to London and New York."

"That is where we want to be, and that is where we can be."
http://lbo.lk/fullstory.php?nid=890403845



Last edited by sriranga on Thu Feb 28, 2013 2:53 pm; edited 1 time in total

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

K.Haputantri

K.Haputantri
Co-Admin
An interesting one & eye-openner to many. Thanks Shri for sharing.

Back to top  Message [Page 1 of 1]

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