‘As prices are low, CSE ideal place to invest’
The Colombo Stock Exchange (CSE), is an ideal place to invest as most
of the prices of its stocks are attractively low. However, given the
current situation, the inflow of foreign investments have reached high,
“Since the market was attractively low at present, it is quite
encouraging for local and foreign investors to invest in companies, as
most of the companies have performed reasonably well during the year,”
Director, Bartleet Religare Securities (Pvt)Limited Angelo Ranasinghe
He said that during the year, the foreign buying net flow had been Rs
35 billion and they were quite active than local investors.
The reason being that the Sir Lankan economy was resilient to any
condition and it was an excellent opportunity for investors to invest
their money in stocks. However, when local investors were not amply
active, it was the need of the hour to promote them, he said.
According to Ranasinghe, the positive sentiments and good corporate
results, coupled with foreign buying, was helping the market to perform
well during the year.
Therefore, foreign buying on the CSE to date this year, stands at a
net inflow of Rs. 37 billion.
The highest ever mark the ASPI has reached was 7811 points, way back
in February 2011.
Lanka Securities (Pvt) Limited, Head of Sales and Marketing Eardley
Kern, said that the market has only good things to offer with around100
companies shares being below 10 times of the price earning ratio with
most of the stocks also traded in below the net asset value.
He said that when the market is fundamentally strong, locals tend to
sell their stocks, while foreign investors were accustomed to buy.
Therefore, it was the need of the hour to counter that trend to yield
higher returns than the current bank interest rate, he said. In the
market the All Share Price Index target had been 9,000 by the end of
2014. Sentiment are likely to improve gradually and pick up steam by
2013, in view of the prevailing uncertainty in global economies and high
domestic interest rates,” it noted.
The report cited improving foreign investor confidence based on
attractive valuations, particularly, when against regional emerging and
frontier markets and strong economic growth prospects as a basis for its