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.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

LISTED COMPANIES

Submit Post



Poll

Can there be another Covid-19 wave in Sri Lanka?

Sri Lanka still the territory of frontier market specialists Vote_lcap68%Sri Lanka still the territory of frontier market specialists Vote_rcap 68% [ 178 ]
Sri Lanka still the territory of frontier market specialists Vote_lcap18%Sri Lanka still the territory of frontier market specialists Vote_rcap 18% [ 47 ]
Sri Lanka still the territory of frontier market specialists Vote_lcap13%Sri Lanka still the territory of frontier market specialists Vote_rcap 13% [ 35 ]

Total Votes : 260

STOCK MARKET TRAINING
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



Latest topics

» EXPOLANKA HOLDINGS PLC (EXPO.N0000)
by apple Today at 12:19 am

» CAL Initial Public Offer
by abey Today at 12:17 am

» HSenid IPO
by abey Today at 12:09 am

» CLC...DONT PANIC
by sureshot Yesterday at 10:53 pm

» Don't marry a stock, marry the idea of making money trading stocks. That's the only way to do it.
by Asoka Samarakone Yesterday at 9:03 pm

» Beware of Fabricated news on CLC
by Surajmp Yesterday at 6:55 pm

» LOLC Group Share Rise Imminent
by Winner123 Yesterday at 6:46 pm

» LOLC Advanced Technologies launches RT-LAMP Covid 19 Test Kit in Sri Lanka
by samaritan Yesterday at 4:37 pm

» NAMU/WATA super gain
by cseguide Yesterday at 12:20 pm

» WATA and other plantation stocks
by cseguide Yesterday at 12:17 pm

» SEMB.N and SEMB.X
by adjoseph Yesterday at 11:59 am

» LOFC Direction
by stockchaser Yesterday at 5:59 am

» CLC - Bull & Bear LOCKED HORNS - can blast at any time.
by D.G.Dayaratne Fri Dec 03, 2021 8:07 pm

» ඔමික්‍රෝන් ලංකාවට ඇතුලු වෙයි
by stockchaser Fri Dec 03, 2021 6:28 pm

» CLC - worth the Investment
by Captain Fri Dec 03, 2021 6:18 pm

» LOLC waiting for LOFC 100+ and CLC 100+
by Captain Fri Dec 03, 2021 6:17 pm

» Water For All - CIND
by LHW Fri Dec 03, 2021 5:37 pm

» COCR can be attractive
by C.THARANGA Fri Dec 03, 2021 1:22 pm

» SCAP just about to run
by Swissinvest Fri Dec 03, 2021 12:23 pm

» NP Rumored to enter SCAP
by Swissinvest Fri Dec 03, 2021 10:42 am

EXPERT CHRONICLE™

MARKET CHAT


CHRONICLE™ ANALYTICS


ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

LATEST TWEETS

You are not connected. Please login or register

FINANCIAL CHRONICLE™ » DAILY CHRONICLE™ » Sri Lanka still the territory of frontier market specialists

Sri Lanka still the territory of frontier market specialists

2 posters

Go down  Message [Page 1 of 1]

sriranga

sriranga
Co-Admin

Open for discussion.

Feb 28, 2013 (LBO) - Sri Lanka is still the territory of a small group of specialist investors being relatively unknown and with only a few companies of a sufficient size and liquidity, frontier market investors said.

Brad West, a long time Asian frontier market investor who is now chief operating officer of CAL Partners, which was set up with Sri Lanka's Capital Alliance group says larger funds find it difficult to enter Sri Lanka.

"The eligible investor looking at Sri Lanka's listed market today is a very tiny part of the global equity investor community," he told a forum of senior executives at the LBR-LBO Chief Financial Officers Forum in Colombo.

"He or she is a frontier specialist."

He said in a typical Asian emerging market fund about 10 percent may be allocated to frontier markets.

West said a frontier market fund would take a position of about million dollars in a fund, whereas in an emerging market fund it was about 10 million dollars. In a global fund the position would be larger.

West said foreign funds would not want to hold more than 9.9 percent of a company because owners of the fund would want board representation and if something went wrong the fund managers could be sued.

"He does not want to own more than three days worth of trades," West said. "So you work it all out and Holy Cow you can’t buy a lot of companies."

Lloyd Fisher, another emerging markets investor said Sri Lanka only had a few companies with over a billion US dollars in market cap, though a few had over 500 million US dollars.

Foreign investors did not want to buy into companies whose stock moved up sharply the moment they started to take a position, he said.

They also wanted liquidity to exit when they wanted. Very few companies in Sri Lanka fit the bill he said. Fisher said he had been investing in Sri Lanka for about a year.

"Foreign investors look for corporate governance, transparency, clear and understandable regulations," he said. "It sound clichés it but it is not difficult to achieve."

They said conditions in Malaysia in the early 1990s and Singapore in the 1980s were somewhat similar to Sri Lanka.

Fisher said investors looked at transaction costs, including brokerage, custodial fees, and foreign exchange conversion costs.

West said frontier market investors had to be patient, and could not do quick trades because transactions costs could be up to 4 percent in a frontier market compared to half that in a more advanced market.

In Sri Lanka's last market boom, fired by low interest rates and margin credit many foreign investors made the right call and exited. They are now coming back.

West said when he first went to Malaysia there were hardly any foreigner and it was a 'fly-over' territory. He said Sri Lanka was somewhat in similar.

"In a year or two from now you've got to land here," he said. "And guess what? It is a cleaner place. A safer place, the quality of life is higher. People are smart."

Other analysts however have said that Malaysia and Singapore have had the basics right including good monetary, fiscal policy and rule of law. In Sri Lanka however though a 30-year war ended concerns are rising and nationalism is on the rise.

But West said believed Sri Lanka could make it.

"Today people who come here are on the way to Dhaka, to Karachi. That is the frontier market routine," he said.

"We want to be in the route where you go to Singapore for a couple days, go you go KL. Then you come here, and finish your trip in Mumbai and go back to London and New York."

"That is where we want to be, and that is where we can be."
http://lbo.lk/fullstory.php?nid=890403845



Last edited by sriranga on Thu Feb 28, 2013 2:53 pm; edited 1 time in total

http://sharemarket-srilanka.blogspot.co.uk/

K.Haputantri

K.Haputantri
Co-Admin

An interesting one & eye-openner to many. Thanks Shri for sharing.

Back to top  Message [Page 1 of 1]

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