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Sri Lanka Equity Forum » Stock Market Talk » What are the reasons for the foreign selling

What are the reasons for the foreign selling

Go down  Message [Page 1 of 1]

1What are the reasons for the foreign selling Empty What are the reasons for the foreign selling on Tue Dec 27, 2011 7:50 pm

insidertrader


Manager - Equity Analytics
Manager - Equity Analytics
Today's foreign selling is 809,084,239. Foreign purchases was just 20,899,930.

Why are foreigners selling these *undervalued* *fundamental* shares *at this last chance to buy at these bargain prices*?

illuminati


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@insidertrader wrote:Today's foreign selling is 809,084,239. Foreign purchases was just 20,899,930.

Why are foreigners selling these *undervalued* *fundamental* shares *at this last chance to buy at these bargain prices*?

Unfortunately no one , not even a " Universal Moderator" will come forward to answer this. It looks as if the intelligent retailors have bought 200M worth of absolute bargains whilst the poor "Suddas" are running away.

madurajithp


Senior Equity Analytic
Senior Equity Analytic
observed heavy selling on COMB, may be the comb is the reason. I'm not sure. I don't have foreign transaction data with me.

Rajaraam


Vice President - Equity Analytics
Vice President - Equity Analytics
@madurajithp wrote:observed heavy selling on COMB, may be the comb is the reason. I'm not sure. I don't have foreign transaction data with me.

Some extermist purposely do not say truth. They know that foreigners here do not invest for longterm. They do trading. They hold shares for short time and sell with a small profit. So they buy and sell. Last friday foreingers bought over aRs. half a billion worth of shares and today may be some other foriegn party has sold shares worth about 0.8 billion. That has nothing to excite.

tata


Stock Analytic
Stock Analytic
Could expectation of possible rupee depreciation be a reason for foreign selling?

Rajaraam


Vice President - Equity Analytics
Vice President - Equity Analytics
@tata wrote:Could expectation of possible rupee depreciation be a reason for foreign selling?

Dear friend, You have a good point. But then why did they bought shares on last friday for over Rs.Half a billion?
They just trading. They dont want to invest for long term.



Last edited by Rajaraam on Tue Dec 27, 2011 9:27 pm; edited 1 time in total

Kumar

Kumar
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
@tata wrote:Could expectation of possible rupee depreciation be a reason for foreign selling?
Even in that case rupee should depreciate more than 5% to enable them to absorb the broker fees no?
Which is not in this particular scene.(in my opinion,may be I'm wrong)

Light of Hope


Vice President - Equity Analytics
Vice President - Equity Analytics
@Rajaraam wrote:
@tata wrote:Could expectation of possible rupee depreciation be a reason for foreign selling?

Dear friend, You have a good point. But then why did they bought shares on last friday for over Rs.Half a billion?
They just trading. They dont want to invest for long term.

so it this good or bad???

aj


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
According to Rajaraam, foreigners are doing "trading" with the crossings, buy last week sell this week. Smile
What do you think about that?

gaya


Senior Equity Analytic
Senior Equity Analytic
Last friday foreign Net In flow - 231m
last day foreign Net Out flow - 809m

Why they exit ?? Sad

raa


Manager - Equity Analytics
Manager - Equity Analytics
1) Foreigners sell because they need money in their home countries as things are not very good abroad. Most global and large funds are looking at closing up offices in Asia and the Middle East so please do not jump to conclusions.

2) As it is the year end, most funds. or institutionals have their reasons to sell out to balance books or to window dress their accounts

3) The only short term traders who are foreign investors are either small players or institutions that monitor the CSE daily and those are few I can guarantee you.

4) JKH - Janus Funds, Genesis group and Aberdeen Group and many others have invested into the company for years. Their collective stake in JKH is over LKR 40bn!!! (my guess)
Take any of the top 10-25 companies on market cap and go through their financials and you will see foreign parties who have held on to their shares for over 3 YEARS... they are sitting on very pretty profits and still holding. So how does RAJAARAM claim that they are short term. Some are, but I've highlighted the bigger foreign players.

5) Also, is it not possible that the foreign party buying on Friday is NOT the same party selling?? There are many foreign elements Razz ....

6) The depreciation will hurt earnings from selling out of the CSE and repatriating the money out of the country

econ

econ
Global Moderator
Current economic situation in western countries is not that good and many foreign players also required money on their hand. Thus, foreign players may take profit in their stake at emerging market countries. I think most of those comb sellers bought those shares few years ago with very lower price levels.

Kumar

Kumar
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Western countries economy in down turn is true for certain extend and they are also pulling out investments from emerging market is not a fact at this moment.
Hedge funds are investing some parts of their funds in emerging share market.
They invest their funds in preferrential shares, where they can get more return than dividend.
Most of the investment when made by themself took care about the countries inflation pattern also.
If we go through the CSE listed companies detailed financial accounting notes, we can find so many borrowed money at 13-15% interest. But their dividends are less than 5% when comparing to the market value.
Fund managers are not stupid to blindly invest or chasing craps.
These are my view may be I'm wrong.
Please educate me.

UKboy

UKboy
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
@aj wrote:According to Rajaraam, foreigners are doing "trading" with the crossings, buy last week sell this week. Smile
What do you think about that?

I dont think foreigners are (mainly) doing tradings.

Just one example.
Arisaig India Fund Limited fund recently exit from JKH ( Melstacorp was the buyer). This Indian fund bought its stake in JKH even before 2005.

However when it comes to Carson group I'm not too sure how it (so called tradings) works. Rolling Eyes



Last edited by UKboy on Thu Dec 29, 2011 6:49 pm; edited 1 time in total

Rajaraam


Vice President - Equity Analytics
Vice President - Equity Analytics
@raa wrote:1) Foreigners sell because they need money in their home countries as things are not very good abroad. Most global and large funds are looking at closing up offices in Asia and the Middle East so please do not jump to conclusions.

2) As it is the year end, most funds. or institutionals have their reasons to sell out to balance books or to window dress their accounts

3) The only short term traders who are foreign investors are either small players or institutions that monitor the CSE daily and those are few I can guarantee you.

4) JKH - Janus Funds, Genesis group and Aberdeen Group and many others have invested into the company for years. Their collective stake in JKH is over LKR 40bn!!! (my guess)
Take any of the top 10-25 companies on market cap and go through their financials and you will see foreign parties who have held on to their shares for over 3 YEARS... they are sitting on very pretty profits and still holding. So how does RAJAARAM claim that they are short term. Some are, but I've highlighted the bigger foreign players.

5) Also, is it not possible that the foreign party buying on Friday is NOT the same party selling?? There are many foreign elements Razz ....

6) The depreciation will hurt earnings from selling out of the CSE and repatriating the money out of the country

aj wrote:
According to Rajaraam, foreigners are doing "trading" with the crossings, buy last week sell this week.
What do you think about that?

Dear raa,aj and Ukboy,

Yes, I sincerely admit. Foreigners do both . I apologize.

Kumar

Kumar
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
@Rajaraam wrote:
@raa wrote:1) Foreigners sell because they need money in their home countries as things are not very good abroad. Most global and large funds are looking at closing up offices in Asia and the Middle East so please do not jump to conclusions.

2) As it is the year end, most funds. or institutionals have their reasons to sell out to balance books or to window dress their accounts

3) The only short term traders who are foreign investors are either small players or institutions that monitor the CSE daily and those are few I can guarantee you.

4) JKH - Janus Funds, Genesis group and Aberdeen Group and many others have invested into the company for years. Their collective stake in JKH is over LKR 40bn!!! (my guess)
Take any of the top 10-25 companies on market cap and go through their financials and you will see foreign parties who have held on to their shares for over 3 YEARS... they are sitting on very pretty profits and still holding. So how does RAJAARAM claim that they are short term. Some are, but I've highlighted the bigger foreign players.

5) Also, is it not possible that the foreign party buying on Friday is NOT the same party selling?? There are many foreign elements Razz ....

6) The depreciation will hurt earnings from selling out of the CSE and repatriating the money out of the country

aj wrote:
According to Rajaraam, foreigners are doing "trading" with the crossings, buy last week sell this week.
What do you think about that?

Dear raa,aj and Ukboy,

Yes, I sincerely admit. Foreigners do both . I apologize.

Rajaraam,
I'm proud of your politeness.
Well done mate. keep it up.

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