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.
FINANCIAL CHRONICLE™

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

LISTED COMPANIES

Submit Post



Poll

Can there be another Covid-19 wave in Sri Lanka?

Sri Lanka is a compelling case for investment, Blackrock fund manager tells UK investors Vote_lcap68%Sri Lanka is a compelling case for investment, Blackrock fund manager tells UK investors Vote_rcap 68% [ 178 ]
Sri Lanka is a compelling case for investment, Blackrock fund manager tells UK investors Vote_lcap18%Sri Lanka is a compelling case for investment, Blackrock fund manager tells UK investors Vote_rcap 18% [ 47 ]
Sri Lanka is a compelling case for investment, Blackrock fund manager tells UK investors Vote_lcap13%Sri Lanka is a compelling case for investment, Blackrock fund manager tells UK investors Vote_rcap 13% [ 35 ]

Total Votes : 260

STOCK MARKET TRAINING
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



Latest topics

» CLC placed on a Slingshot . . . !!!
by cseguide Yesterday at 11:30 pm

» SUNSHINE HOLDINGS PLC (SUN.N0000)
by LHW Yesterday at 10:35 pm

» WATAWALA PLANTATION PLC (WATA.N0000)
by Niwa Yesterday at 10:22 pm

» ELPL-WATA-UDPL
by Niwa Yesterday at 10:14 pm

» Dusit Thani Sri Lanka project halted?
by js71 Yesterday at 8:48 pm

» BOGALA GRAPHITE LANKA PLC
by cheetah Yesterday at 8:19 pm

» WATA good times are ahead
by cseguide Yesterday at 8:16 pm

» EXPOLANKA HOLDINGS PLC (EXPO.N0000)
by jaya Yesterday at 6:50 pm

» EXPO/BILL/LOLC
by SAGA Yesterday at 6:35 pm

» The fate of NIFL .. CLC .. LOFC under LOCH
by Shivanthini Yesterday at 3:57 pm

» CLC - Bull & Bear LOCKED HORNS - can blast at any time.
by Shivanthini Yesterday at 3:55 pm

» CFLB hidden gem
by skyfall Yesterday at 2:13 pm

» LLUB Dividend
by rajithasahan Yesterday at 1:49 pm

» GLAS will be winner with Super Gain.
by invest thinker Yesterday at 11:36 am

» Next Bull - ELPL/Elpitiya Plantation
by Tissa Yesterday at 6:31 am

» PEOPLE'S INSURANCE PLC (PINS.N0000)
by Ekanayake90 Sun Oct 24, 2021 9:52 pm

» What happen to Dhammika Perera
by Basu Sun Oct 24, 2021 8:48 pm

» AEL becomes the major producer & supplier of asphalt concrete in Sri Lanka
by samaritan Sun Oct 24, 2021 3:44 pm

» KOTAGALA PLANTATION PLC (KOTA.N0000)
by Tissa Sun Oct 24, 2021 11:38 am

» ELPITIYA PLANTATIONS PLC (ELPL.N0000)
by Tissa Sun Oct 24, 2021 11:12 am

EXPERT CHRONICLE™

MARKET CHAT


CHRONICLE™ ANALYTICS


ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

LATEST TWEETS

You are not connected. Please login or register

FINANCIAL CHRONICLE™ » DAILY CHRONICLE™ » Sri Lanka is a compelling case for investment, Blackrock fund manager tells UK investors

Sri Lanka is a compelling case for investment, Blackrock fund manager tells UK investors

Go down  Message [Page 1 of 1]

Jayashantha

Jayashantha
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Top fund manager of one of the world’s pre-eminent asset management firms BlackRock, Gordon Fraser last week pitched that stock valuations in Sri Lanka are quite attractive, with banks being ‘a very good prospect’. Addressing an investor forum in the United Kingdom last week, Fraser, who is the Fund Manager, Member of the Emerging Markets Specialists Team, BlackRock said that although in most other emerging markets one would find that banks have been a good way to get exposure to the economic development of a country over time, so long as they are run prudently, in Sri Lanka, the investment case is even more compelling as penetration of loans stands at just 30 per-cent of GDP, which is well below emerging market norms.

“A typical Emerging Market country would have 70 to 100 percent loans to GDP. Banks in Sri Lanka trade at cheap multiples, as shown earlier. Therefore in our opinion, banks are a cheap way to get exposure to Sri Lanka’s development,” Fraser said adding that he was very positive about the outlook of the Sri Lankan economy.

He noted that the best economic growth stories are very supply side-led and hence Sri Lanka can excel given that it is adding infrastructure such as port capacity to leverage its position on east-west shipment routes, developing itself into a transhipment hub, and working on more efficient and powerful power capacity

Meanwhile, highlighting some challenges in the economy, Fraser said there are some issues where Sri Lanka has some large twin deficits, and it must be careful to avoid the trap that many other emerging markets have fallen into by becoming dependent on foreign savings rather than domestic savings, to grow.

“The more pressing issue for us however is liquidity, and despite a plethora of theoretically interesting investments, the list of companies that offer sufficient ownership is fairly restrictive. Liquidity, however, will improve over time and anything that can be done in this regard will be very welcome,” he pointed out.

He added that if you just compare Sri Lanka with some of the other frontier markets, it is certainly less liquid, compared to Saudi Arabia, Nigeria, Pakistan and even Vietnam and it is also a little more expensive on earnings multiples, than some of these other markets.

“However, I believe that the long-term prospects are among the most attractive in the Frontier Universe. Therefore, we view Sri Lanka as a compelling place to invest on a relative basis but also on an absolute basis and consequently Sri Lanka is a large overweight on our funds,” Fraser concluded.

- See more at: http://www.nation.lk/edition/biz-news/item/30047-less-liquid-but-more-lucrative.html#sthash.CowQHieP.dpuf

Back to top  Message [Page 1 of 1]

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