Reasons for Foreigners to Enter

MoneyMaker · 1 Reasons for Foreigners to Enter Tue Apr 26, 2011 2:33 pm

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Looking at CSE from a foreigners point of view

Whats the attractiveness in our market in comparison to foreign markets such as India etc..

If u were a foreigner would you invest in CSE?

There probably are many reasons, list them?

Positives or Negtatives??

icecool · 2 Re: Reasons for Foreigners to Enter Tue Apr 26, 2011 4:06 pm

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Year ending and starting date.

Ben Graham · 3 Re: Reasons for Foreigners to Enter Tue Apr 26, 2011 4:35 pm

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actually im in to positive side. not 100% because i dnt know dat much about CSE. Sri Lanka is a developing country. after the war huge area of SL is open for development and business. lot of businesses can be opened and existing ones can be EXPANDED like never before. SL is a small country though it has everything it need just like a big continent. only thing we dnt have snow fall and luckily NO volcanoes. bt nuwara eliya is lil close to dat as well. so my point here is SL have so many resources than needed for a small country(dnt get mad at me). big companies and gud managerial companies are getting the best out of it. so compared to the investment amount gain is very reasonable according to me.

Aamiable · 4 Re: Reasons for Foreigners to Enter Tue Apr 26, 2011 10:00 pm

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MoneyMaker wrote:Looking at CSE from a foreigners point of view

Whats the attractiveness in our market in comparison to foreign markets such as India etc..

If u were a foreigner would you invest in CSE?

There probably are many reasons, list them?

Positives or Negtatives??

Compared to many stagnant markets, CSE is growing ......at least some stocks !!

Cool

If it is not growing change the rules.....some way or other ...

may be ... Cool

Antonym · 5 Re: Reasons for Foreigners to Enter Tue Apr 26, 2011 10:19 pm

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Sri Lanka is categorized as a 'frontier market'.

From a long term perspective, foreigners are attracted to them because frontier markets (a) are expected to grow faster than emerging markets as a whole and (b) are not strongly correlated to developed markets.

Light of Hope · 6 Re: Reasons for Foreigners to Enter Tue Apr 26, 2011 11:05 pm

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Political Stability

Peace

very less natural disaster

Political Vision

Frontier Market

Growing Economy

Last edited by Light of Hope on Tue Apr 26, 2011 11:22 pm; edited 1 time in total

ShareShares · 7 Re: Reasons for Foreigners to Enter Tue Apr 26, 2011 11:11 pm

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Tourist arivals, IMF funds, good financials. long term growth prospects. corporate results. lowering interest rates. financial stability.

UKboy · 8 Re: Reasons for Foreigners to Enter Wed Apr 27, 2011 12:04 am

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MoneyMaker wrote:Looking at CSE from a foreigners point of view

Whats the attractiveness in our market in comparison to foreign markets such as India etc..

If u were a foreigner would you invest in CSE?

There probably are many reasons, list them?

Positives or Negtatives??

+ points

1. As Antonym said Yes Sri Lanka is a frontier market
2. Political stability

- points

1. Foreign funds normally do not invest in small scale listed companies & if you check all the biggest listed liquid companies in Sri Lanka you will see that most of these are overly valued.
2. Financial stability in the country.
3. In general foreign funds intends to exit from developing countries. This has been going on for a while.

http://www.thehindubusinessline.com/markets/stock-markets/article1599718.ece

RockStock · 9 Re: Reasons for Foreigners to Enter Wed Apr 27, 2011 4:36 pm

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Another important plus point I can see is gradual appreciation of rupee against the dollar, this will add more value to the capital gain esp in long run, some times even if you sell at an actual loss you will still have some gain due to rupee appreciation over the time

ShareShares · 10 Re: Reasons for Foreigners to Enter Wed Apr 27, 2011 4:55 pm

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RockStock wrote:Another important plus point I can see is gradual appreciation of rupee against the dollar, this will add more value to the capital gain esp in long run, some times even if you sell at an actual loss you will still have some gain due to rupee appreciation over the time

CSE has no effect what so ever from natural disasters, nuclear accidents, Super moon or any moon , so the foreigners can confidently invest in CSE.

Antonym · 11 Re: Reasons for Foreigners to Enter Wed Apr 27, 2011 5:36 pm

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RockStock wrote:Another important plus point I can see is gradual appreciation of rupee against the dollar, this will add more value to the capital gain esp in long run, some times even if you sell at an actual loss you will still have some gain due to rupee appreciation over the time

RockStock - That is a very good point!

US investors can expect to gain from currency movements when they convert back to USD later. Cabraal has already indicated that the rupee would be allowed to appreciate against the USD during 2011. Although 3% or so per annum might not look like a lot to us, it is definitely significant - especially when you consider that interest rates in the US are less than that...

Foreign Investors - Are you listening? Smile

Rocky · 12 Re: Reasons for Foreigners to Enter Wed Apr 27, 2011 7:23 pm

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Assurance by the Govt. And the consistent fiscal and monetary policies that are based on well thought out strategies are very important for any investors. Political stability alone will not assure them.

I have not seen any transperency in the present setup. Am I to pay large sums of money to Dun & Bradsteet to get a market report?

RockStock · 13 Re: Reasons for Foreigners to Enter Wed Apr 27, 2011 8:50 pm

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Antonym wrote:

RockStock wrote:Another important plus point I can see is gradual appreciation of rupee against the dollar, this will add more value to the capital gain esp in long run, some times even if you sell at an actual loss you will still have some gain due to rupee appreciation over the time

RockStock - That is a very good point!

US investors can expect to gain from currency movements when they convert back to USD later. Cabraal has already indicated that the rupee would be allowed to appreciate against the USD during 2011. Although 3% or so per annum might not look like a lot to us, it is definitely significant - especially when you consider that interest rates in the US are less than that...

Foreign Investors - Are you listening?

Yes Antonym, Sure this will buffer the risk exposure of foreign investors in CSE than many other emerging markets . We can expect further strengthening of rupee due to increased export earnings as well as up coming big foreign inflows such as Shangri-la etc.
How ever it's questionable that the CSE/SEC/BOI are doing adequate promoting/advertising campaigns to attract foreigners to CSE