Foreign funds and conglomerates in CSE

ninja · 1 Foreign funds and conglomerates in CSE Fri Oct 07, 2011 1:23 pm

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With the recent developments that are taking place at the high level, I am optimistic on any business conglomerates such as JKH,HHL,SPEN,RICH,EXPO and LCEY. Latest news articles talks about foreign funds coming into the country. They will surely target big businesses. The foreign funds come from Asia this time. With the favorable budget and closure of started infrastructure projects will be key to succeed the sustainable market.
Let's hope for a bright future in 2012.

Rapaport · 2 Looks Good Fri Oct 07, 2011 1:42 pm

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If the market maintains at around 7000 points and with company earnings growing at 30-40% annually we can expect market forward PER to be 14-15X for 2012E and 11-12X 2013E which is on par with other Asian markets.

This will attract new investors and with the growth rate of Sri Lanka maintaining at 8%, many people will be attracted to CSE. However i feel SEC should put in some rules to increase the minimum free float of companies to help reduce price volatility, esp in junk stocks.

Lets hope the expected funds arrive but in my opinion, the market at current 17X is still expensive. More correction/stagnation may occur till company earnings catch up!

ninja · 3 Re: Foreign funds and conglomerates in CSE Fri Oct 07, 2011 2:09 pm

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Any of you guys have got forward PE of each of these shares?

hariesha · 4 Re: Foreign funds and conglomerates in CSE Fri Oct 07, 2011 3:11 pm

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We are at 14X now. 17X is when the index at 7100.

Rapaport · 5 Re: Foreign funds and conglomerates in CSE Fri Oct 07, 2011 5:06 pm

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SC Smith and Asia Securities in their weekly reports mention current PE at around 17X

soileconomy · 6 Re: Foreign funds and conglomerates in CSE Fri Oct 07, 2011 9:01 pm

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But I am bit worried about European Debt crises .Although our exposure to foreign funds are limited , still there may be trend to withdraw from markets like us.
If it worsens ,directly we will have a hit on Tourism.
I am not negative ,but concern about facts in medium term.

ninja · 7 Re: Foreign funds and conglomerates in CSE Fri Oct 07, 2011 10:05 pm

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So far Rs17b outflow of foreign funds. This can be filled in for a fund like EPF with almost Rs 1 trillion funds. The foreign funds may be stuck with liquidity issue for a long time. Suddenly they have seen the window of opportunity as local funds like EPF buy in big amounts. They might be using this as an opportunity.
Seems Rs 17b is nothing for Sri Lankan funds now Smile

which is only $170m. Pea nuts huh?

chamith · 8 Re: Foreign funds and conglomerates in CSE Sat Oct 08, 2011 5:59 am

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soileconomy wrote:But I am bit worried about European Debt crises .Although our exposure to foreign funds are limited , still there may be trend to withdraw from markets like us.
If it worsens ,directly we will have a hit on Tourism.
I am not negative ,but concern about facts in medium term.

mate, CSE's exposure to foreign funds are very much significant.
Nearly 1/3 of CSE's equity is held by foreigners.

Statistically speaking according to 07/10/2011;
Foreign funds and conglomerates in CSE For10

Foreign funds and conglomerates in CSE For10

See how much the entire market's exposure to foreign funds.
Therefore out flow of this foreign funds is a very critical issue.

soileconomy · 9 Re: Foreign funds and conglomerates in CSE Sun Oct 09, 2011 6:17 am

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thanx for statics .Chamith.
In addition to that(Foreign funds) ,possibility of reduction in profitability of some of our companies will lead to downward trend.?

ninja · 10 Re: Foreign funds and conglomerates in CSE Sun Oct 09, 2011 12:42 pm

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Sigh of relief at least today. Foreign net inflow has been recorded after 10 or so consecutive days;
Foreign Purchases 316,407,000
Foreign Sales 294,583,702

WildBear · 11 Re: Foreign funds and conglomerates in CSE Mon Oct 10, 2011 9:48 am

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chamith wrote:

soileconomy wrote:But I am bit worried about European Debt crises .Although our exposure to foreign funds are limited , still there may be trend to withdraw from markets like us.
If it worsens ,directly we will have a hit on Tourism.
I am not negative ,but concern about facts in medium term.

mate, CSE's exposure to foreign funds are very much significant.
Nearly 1/3 of CSE's equity is held by foreigners.

Statistically speaking according to 07/10/2011;

See how much the entire market's exposure to foreign funds.
Therefore out flow of this foreign funds is a very critical issue.

If Sri Lanka's Pensions funds like EPF and ETF and other investment funds Enter in CSE in larger scale, that will replace deficit of Foreign funds.