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

» FUTURE of BROWNS INVESTMENT PLC (BIL)
by ONTHEMONEY Yesterday at 10:39 pm

» The market changes fast; it is OK to get out when you feel it is right and take the profits that you can. Stock market for beginners
by Asoka Samarakone Yesterday at 10:04 pm

» CONTRADICTARY statements BY BUYER & SELLER RE: MGT & GREG
by GHERATH72 Yesterday at 9:54 pm

» Ban of chemical fertilizers is a great news
by dayandacool Yesterday at 9:50 pm

» Economic Uncertainty Drives Crypto Growth in Sri Lanka
by CHRONICLE™ Yesterday at 9:23 pm

» GLAS will be winner with Super Gain.
by Thushara Ayya Yesterday at 6:50 pm

» DIPPED PRODUCTS PLC (DIPD.N0000)
by ADVENTUS Yesterday at 4:37 pm

» Sri Lanka Bonds Go From Asia’s Worst to Best After China Loan
by dayandacool Sat May 15, 2021 11:31 pm

» CSE listed companies...Failed or collapsed
by High-flyer Sat May 15, 2021 9:14 pm

» L B FINANCE PLC (LFIN.N0000)
by kanishkaecomm Sat May 15, 2021 5:17 pm

» කොටස් වෙළඳපොළ2020
by කොටස් වෙළඳපොළ2020 Sat May 15, 2021 11:52 am

» 14 May onwards -Road Clear to Enter one of the Asias Most Undervalued Stock Market
by kalu351 Sat May 15, 2021 6:34 am

» Plantation Sector
by කොටස් වෙළඳපොළ2020 Fri May 14, 2021 10:13 pm

» Company Financials or Group Financials?
by ronstyn53 Fri May 14, 2021 8:07 pm

» Banking Sector Analysis
by ADVENTUS Fri May 14, 2021 7:34 pm

» CHEVRON LUBRICANTS LANKA PLC ((LLUB.N0000)
by Bakkabwoi Fri May 14, 2021 5:24 pm

» Grain Elevators Earnings Review With Q1 Results
by EquityChamp Fri May 14, 2021 10:11 am

» What will happen tomorrow?
by Lakshman wijayawardhana Fri May 14, 2021 9:57 am

» Most Undervalued Shares
by Lakshman wijayawardhana Fri May 14, 2021 9:54 am

» Future of Talawakelle Plantation PLC
by කොටස් වෙළඳපොළ2020 Fri May 14, 2021 5:02 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™ » FINANCIAL CHRONICLE™ » Political uncertainty-driven investor sentiment

Political uncertainty-driven investor sentiment

Go down  Message [Page 1 of 1]

Maran


Senior Equity Analytic
Senior Equity Analytic
Political uncertainty-driven investor sentiment

When politics takes centre stage, investors and even investment managers get nervous as political events can dominate news headlines and rattle markets. The replacement of the once supreme President Mahinda Rajapaksa with his long-term loyalist and Minister Maithripala Sirisena may be history now. However, the ultimate effect on the economy and the markets will be unknown for some time now.
The nature of political uncertainty is such that investors must think of a way to adjust their portfolio to the potential downside risk that faces their investment portfolios.
Political uncertainty is primarily the key reason why our economy cannot get into top gear. The prevailing period of vagueness can be attributable to political uncertainty, due to the lack of political patronage within Parliament and its lawmakers entrusted to govern the country.
It is the first time since 2006 that the country is witnessing a minority government and it is also the first time since 2004 that the country is witnessing an executive from one party and a Government comprising a majority from another party. In addition, the present Government comprises a coalition of many factions with numerous views and values. Such factors have driven indecision in the minds of many investors which has resulted in low confidence and has tempered their willingness to invest in comparatively risky investments such as stocks.
This period of indecision has resulted in many investors cashing in their shares and transferring to more stable fixed income instruments. Some have pounced on the opportunity to devote more funds to the stock market and pick up strong fundamental counters dumped at a further discount to their long-term price targets.
The liquidation of shares can be attributable to fear that drives investor sentiment as investors are unable to decide on the correct investment decision regarding the direction of the market in the wake of the outcome remaining a dilemma. On the contrary, bold investors are likely to rely on long-term potential or they may be simply adhering to buying to take advantage of volatility. In essence, the market will have a low appeal to many investors in periods of decline, nevertheless, the true edge over their rival investors is also formed during such periods.
Equity market participants expecting a period of strong and long returns with the election of President Sirisena and the formation of a national government headed by a more capitalist United National Party, has been made to ponder the possible results of the decisions taken by the current administration.
The future outlook for a strong Government after the general election, due later this year, also remains a quandary with the Sri Lanka Freedom Party (SLFP), led by President Sirisena, showing intentions to form a Government of its own. This notion would mean that the national government concept vociferously proclaimed by Sirisena would also come to an abrupt end.
Investor uncertainty
In addition, factions loyal to former President Rajapaksa have shown signs of resurgence with a case to declare Rajapaksa as a candidate for Prime Minister within the party. Election outcomes are relevant for investment decisions as they have implications for industry regulation, monetary and trade policy, taxation and, in more extreme cases, possible expropriation or nationalisation of private firms.
The new administration has also put a halt to the mega infrastructure projects initiated by the previous Government, highlighting large-scale corruption and overvalued cost estimates. Several development agencies have highlighted the ill-effects the cessation of such projects would have on the growth rate of the national economy. Also the present Government has yet failed to completely clear the inefficiencies and accusations of corruption regarding the Treasury Bond issue that occurred under their purview, which left the country’s interest rates soaring upwards unexpectedly.
In spite of the above, the Government has been able to reduce the cost of living by granting concessions on some key necessities and salary increments to state workers. These concessions have been granted at the expense of more debt and instilling one-time taxes on highly profitable entities.
In addition to the concessions, the Government has been able to take large steps in the move towards establishing a broader democracy with the passage of the 19th Amendment to the Constitution. This was possible despite them having to compromise on many key elements of the Bill to gain the support of the required number of MPs. Measures are already in place to bring forth sound electoral reforms such as the 20th Amendment. Therefore, with the measures in place during the past 110 days, it can be stated that more democratic, transparent and credible governance is on the verge of being established in an island nation that is poised for a true growth story.
The ‘Good Governance’ era, as proclaimed by the incumbent President during his election campaigns, can be arguably perceived to be in operation. However, the actual establishment of good governance may in essence be a few years away.
With the existence of such abundant uncertainty, investors should carefully watch the political climate as talk is cheap but outcomes aren’t. Furthermore, as soon as the election nears we should experience a period of dormancy where more investors will move into a wait-and-see mood and divert more investments into stable return generating fixed income instruments. Such times will be beneficial for those equity investors with long-term investment horizons.
It is very likely that we have entered a temporary period of political uncertainty that will subside after the next general election. Economic growth will begin once the political outcomes become clearer. The investment climate will improve greatly if interest rates and inflation remain low with a stable currency. As in the past, with more certainty comes more activity as investors move off the sidelines back into the game while being better positioned for what is to come.

http://www.ft.lk/2015/05/11/political-uncertainty-driven-investor-sentiment/

Maran


Senior Equity Analytic
Senior Equity Analytic
The continually loss-making Central Bank puts nation on red alert

http://www.ft.lk/2015/05/11/the-continually-loss-making-central-bank-puts-nation-on-red-alert/

Senior Citizen

Senior Citizen
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Maran,

We have been in perpetual indebtedness to every other nation for the past many centuries.

Now we need to ride this type of governance which is the result of our swollen headedness and stubbornness, if not bad ethics a a few more decades.

Who ever or what ever comes will be the same old trash in a new packaging. Don't grumble. Just keep moving ahead. Adjust and be flexible. VUCA is the name of the game!

lossorgain

lossorgain
Manager - Equity Analytics
Manager - Equity Analytics
I think Maran is out to cause a panic driven market today :) We do the news papers and well quite not much bothered as of now

VALUEPICK

VALUEPICK
Expert
Expert
“It is very likely that we have entered a temporary period of political uncertainty that will subside after the next general election. Economic growth will begin once the political outcomes become clearer. The investment climate will improve greatly if interest rates and inflation remain low with a stable currency. As in the past, with more certainty comes more activity as investors move off the sidelines back into the game while being better positioned for what is to come.”
 
Just like stock market please study the political world. So we can get wise investment decisions in advance.  There will be permanent cabinet in Sri-Lanka. If we know the political party that going to win after electron try to identify stocks accordingly. There are plenty of badly beaten down, undervalued stocks in the market. In addition, we should see some turnaround opportunities in the market. We should pick stocks before they go up. In bull market even short term uncertainly situations create great buying opportunity. There were uncertainties in counties such as India, China and Pakistan. After that they had some of the world beating stocks markets in the world. Sri-Lankan market also should become next world beating market in Asia.
 

Good luck!

Sponsored content


Back to top  Message [Page 1 of 1]

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