Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum 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
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

සිංහල පරිවර්තනය
Submit Post
Submit Post
Market Place

Add an ad

View all ads

Latest topics

» AAIC - Profit over one billion!!!!!
by wisdom79 Today at 7:36 pm

» Positive News
by Promoney Today at 7:24 pm

» Bansei Royal Resorts BRR up 23%
by Invest-Wise Today at 4:52 pm

» BIL පුපුරා යාමට ආසන්නයි
by Winner123 Today at 4:30 pm

» Market again heading to 4800? :D
by Ahcha Today at 3:38 pm

» RAL....RAL, Renuka Agri
by nirowat Today at 3:33 pm

» Massive Fraud At AEL subsidiry
by ThilinaM Today at 2:30 pm

» Just About Prima Glass – GLAS
by KOLAA Today at 1:18 pm

» LOOKOUT FOR SIRA
by Eugine Fernando Today at 12:51 pm

» SEMB.N predictions
by 4Corners Today at 10:14 am

» FORUM POLITICIANS
by CITIZEN Today at 10:10 am

» After Advanced level what is
by lankaspeaker Today at 9:57 am

» LOTUS TOWER economy
by CITIZEN Today at 9:55 am

» PRESIDENT ELECTION
by Ahcha Today at 7:21 am

» GOOD SHARES TO BUY
by Teller Yesterday at 11:23 pm

» Why AAIC Should trade above RS.50/-
by wisdom79 Yesterday at 7:56 pm

» Stupid fucking UNP and ranils ass hole economics
by samaritan Yesterday at 7:14 pm

» KAPI (MDT Walkers PLc)
by samaritan Yesterday at 7:12 pm

» Learn To Invest Yourself.
by Asoka Samarakone Yesterday at 5:56 pm

» DIVIDEND UPDATES Link
by Beta1 Yesterday at 3:12 pm

» lOFC definitely will hit 6/-
by Teller Yesterday at 1:04 am

» Renuka managemnt Treat SH as Trash
by Sanju121 Sun Sep 15, 2019 5:36 pm

» Blue Diamonds Voting & Non Voting
by Ahcha Sun Sep 15, 2019 6:35 am

» MULL trade up possibilities
by crs Sat Sep 14, 2019 7:22 pm

» MARA marai
by SECsux Fri Sep 13, 2019 6:22 pm

» SLTL REVALUATION OF ASSETS IS ON............
by Eng Krishantha Fri Sep 13, 2019 5:06 pm

» LIOC shares
by lakmal Fri Sep 13, 2019 12:47 pm

» JKH will touch 175 very soon
by Rare Fri Sep 13, 2019 11:10 am

» ඇවන්ගාඩ් අල්ලස් නඩුවෙන් ගෝඨාභය නිදහස්
by samansilva Fri Sep 13, 2019 12:25 am

» Invest AEL and TKYO return more than 30%...
by samaritan Thu Sep 12, 2019 5:15 pm

» Watch Out for MAL.X
by Cricketman Thu Sep 12, 2019 1:56 pm

» LOOKOUT FOR GLASS
by Sanju121 Thu Sep 12, 2019 1:02 pm

» NEXT RUN LDEV
by Sanju121 Thu Sep 12, 2019 12:28 pm

» BIL. N mandatory offer at Rs 6.80
by Equityinvestor Thu Sep 12, 2019 12:05 pm

» PAP vs RAL
by Teller Thu Sep 12, 2019 11:04 am

» RAL AND KZOO
by Ahcha Thu Sep 12, 2019 10:40 am

» Look PAP Amazing company
by reyaz Thu Sep 12, 2019 10:21 am

» RENUKA CAPITAL PLC KZOO.N0000@2.80
by ThilinaM Thu Sep 12, 2019 9:56 am

» PIRAMAL GLASS (GLAS)
by Sanju121 Thu Sep 12, 2019 9:45 am

» AEL CAPITAL TRUST 24.50?
by samaritan Thu Sep 12, 2019 7:39 am

» Kzoo vs onal
by fireshelter Wed Sep 11, 2019 5:56 pm

» Still you can Enter to CFVF.N0000 :
by Trader321 Wed Sep 11, 2019 4:55 pm

» Only equity stocks are discussed here!
by reyaz Wed Sep 11, 2019 4:36 pm


You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market Talk » WHY SRI LANKAN CAN NOT DO THIS

WHY SRI LANKAN CAN NOT DO THIS

Go down  Message [Page 1 of 1]

1WHY SRI LANKAN CAN NOT DO THIS Empty WHY SRI LANKAN CAN NOT DO THIS on Wed Sep 19, 2018 8:24 pm

ruwan326

ruwan326
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
India’s high-flying stock market weans off foreign buyers

India’s stock market has become accustomed to foreign investors serving as a reliable engine of funds, with a net $59bn of money flowing in over the past six years. But so far this year that trend has reversed, with the market on course for its first year of net foreign outflows since 2011 — contributing to a hefty decline in the value of the rupee as the currency has plumbed to its weakest level versus the US dollar in recent weeks. Yet amid the foreign selling, India’s Nifty 50 stock index has climbed to a succession of record highs this year. Up 7 per cent in the year to date, the market remains near its all-time peak even after a softening in late August. These contrasting movements are the latest sign of the Indian stock market being increasingly driven by domestic investment, while foreign investors have a less powerful role to play, despite their broadly positive view on the country’s economic outlook. For centuries, Indian households have kept their savings overwhelmingly in property and gold. However, growing financial literacy, coupled with reduced fears of inflation, is now driving a surge of domestic money into the stock market. Indian equity mutual funds had net inflows of Rs780bn ($10.7bn) in the first eight months of this year, according to industry trade group AMFI, easily outweighing the net selling of Rs59bn by foreign equity investors. The domestic buying has driven the Indian market’s valuation to unusually high levels, noted Mahesh Nandurkar, Indian equity strategist at CLSA. On a price-to-earnings basis, the Nifty now enjoys a 60 per cent premium to the emerging markets average, he estimated. It is concerned about overheated valuations, rather than India’s economic outlook, that have caused foreign investors to pare their exposure to Indian stocks, said Saurabh Mukherjea, founder of Marcellus Investment Managers. “The role that foreign investors used to play has been taken over by domestic investors,” he said. “And that has pushed valuations to a level where foreign investors don’t feel comfortable.” But foreign selling in India’s debt market has been even larger, with net outflows of Rs443bn in the first eight months of the year amid tightening US monetary policy. That pushed the 10-year government bond yield this week to 8.14 per cent, its highest level since 2014, while sending the rupee to a record low of Rs72.97 to the dollar. The rupee’s slide has prompted foreign equity investors such as Robert Secker, at M&G Investments, to focus more on sectors such as IT services, which benefit because their revenues are mostly earned abroad and their costs are largely domestic. Shares in the largest of these companies, Tata Consultancy Services, have risen 66 per cent alone in the past year, against 11 per cent for the Nifty as a whole. And while the rupee’s slide has depressed foreign investors’ Indian returns in dollar terms, Mr Secker added, the country’s domestically focused economy means it is seen as a relative safe haven at a time when investors are worrying about emerging trade wars. India has its own trade headaches — notably its heavy reliance on imported oil, where rising prices have been a key factor behind the growing current account deficit that has helped sap the rupee’s value. Other metrics look more promising, said Sunny Ng, a fund manager at PineBridge Investments, highlighting the country’s “stellar” economic growth of 8.2 per cent in the second quarter. Some recent policy changes have also boosted sentiment, he added, such as a new bankruptcy code that should help boost credit growth by giving added protections to lenders.

Overseas investors turn away from Indian stocks In contrast, Indian regulators recently sparked outrage by announcing rules that barred entities owned by Indian-origin people from acting as foreign portfolio investors. An advisory panel has since advised the regulator to reconsider the move, but no reversal has yet been announced. “Whenever the stock market is roaring, the regulators tend to adopt an attitude that we don’t really need foreigners and their money,” Mr Mukherjea said. But while such heavy-handed interventions may unsettle foreign investors, he added, the soaring valuations driven by domestic inflows were having a more meaningful restraining effect on overseas investment. “Foreign investors face a richly valued market at a time when [other emerging markets] have pulled back 20 per cent,” he said. “So if you’re sitting in London, you’ll be hard pressed to explain to your CEO why you’re pumping money into India.”

https://www.ft.com/content/a51956ae-...2-17176fbf93f5

2WHY SRI LANKAN CAN NOT DO THIS Empty Re: WHY SRI LANKAN CAN NOT DO THIS on Fri Sep 21, 2018 6:24 am

Chanuque

Chanuque
Manager - Equity Analytics
Manager - Equity Analytics
@ruwan326 wrote:India’s high-flying stock market weans off foreign buyers

India’s stock market has become ..
@Ruwan326, This is one of the best options to consolidate the LKR value as an EM ( or even as a frontier market ) .. But, the Human Capital of Sri Lanka should get a sound knowledge on financial statement interpretations or unbiased financial review access where anyone get actual snapshot of a PLC. Pumping external cheap money into the market will be stopped. We will not be a contagious market whenever Global Market is tumbling .. We all got to remember that the world is filled with cheap or valueless money like a bubble .. The US alone is somewhere around USD 20 Trillions .. Countries like the US would love to launder its debts to emerging markets and OPEC economies .. So they can get our goods and services in return ..

If we empower CO-OP Societies | SaNaSa | Rural Banks | all related micro economic institutions in the island to encourage its clan to participate with a sustainable portion of their savings to invest in equities as a pilot program ..

Back to top  Message [Page 1 of 1]

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