Sri Lanka’s stocks - the only equities to consider - Jim Rogers

Harshini PERERA

In a recent media report, Chairman, Rogers Holdings, Jim Rogers said that the stocks in Sri Lanka are the only equities he would consider at present. He said that Sri Lanka’s stock benchmark, the Colombo All Share Price Index (ASPI), has jumped 60 percent this year with the defeat of terrorists.

According to the Colombo Stock Exchange (CSE) Annual Report the CSE has seen a gradual increase in foreign investor activity, over the past few years. With the dawn of peace, the country could expect more foreign investments in the CSE.

Director/CEO Asha Phillip Securities Ltd Dimuthu Abeysekera told the Daily News Business “I do agree with Jim Rogers comment. Sri Lanka functions in a post conflict environment where the future potential is attractive and positive.

Listed firms are expected to capitalize on the present opportunity that prevails in the local economy where the rest of the world is experiencing world recession.

At present the CSE is among the first 10 in the world and within the first five in the Asian region,” he said.

Due to the arrival of foreign investors there will be more funds coming in to the market that would boost the overall market capitalization. In addition to the growth in the market capitalization it will improve the momentum and the confidence of the local investors and bring stability to the market, he said.

“Since the first week of May 2009 the All Share Index (ASI) gained 30 percent and we expect the indices to move up further which will be in line with the developments that take place in the economy. However, soon after the war foreign participation was negative in other words foreigners were the net sellers in the market. But at present (end of June and beginning July) the trend has changed. Therefore, foreigners have become the net buyers in the market,” he said.

These foreign investors are interested in banking and diversified counters. Interest is also seen in Hotel counters in general, he said.