CSE saw spate of new funds last year
Some 121 global, regional and country funds, approved by the Securities and Exchange Commission (SEC) last year, have invested in listed securities in Sri Lanka.
Many new funds were seen entering listed firms and picking up sizeable stakes, data showed.
Some of the new names were WM Pool – Equities Trust, AB SICAV I – Emerging Market Local Currency Debt Portfolio, T. Rowe Price Funds Oeic – Dynamic Global Bond Fund, The Cape Ann Ireland Trust, Aquliaria Global Equity fund, Series Institutional II LLC – Asia Focus Series, Lazard Emerging Markets Equity Blend Portfolio, AFC Umbrella Fund – AFC Asia Frontier Fund etc.
Analysis said that newcomers’ trends have been spilling into this year, as now there’s fresh optimism by international funds on Sri Lanka with many new funds eyeing the Colombo Stock Exchange (CSE).
Pyramid Glass Ceylon had new entrants to major shareholders in 1Q18, namely Cheerful Commercial Pvt Ltd (5.1 million shares which is 0.5 per cent), Apposite Trading Pvt Ltd (4.8 million shares also 0.5 per cent). Both are Indian companies.
There were some funds which upped their stakes in listed firms during this year as well. At People’s Leasing, Neon Liberty Lorikeet Master now own 4.39 per cent which is nearly 70,000 shares. In March they had some 64,000 shares. They are also in the top 20 shareholders of Melstacorp PLC and HNB. Swiss private bank Lombard Odier Darier Hentsch & Cie has a 4.4 per cent stake as at June at Kelani Tyres PLC. They’re the company’s fifth largest share owner.
The CSE in association with the SEC hosted a series of ‘Invest Sri Lankan Investor Forums’ to promote Sri Lankan capital market investment in Australia in March this year which augurs well for the CSE. The CSE said in a statement that Rs. 593.4 million, which amounts to 95 per cent of the purchases this year, have been recorded since the Invest Sri Lanka forums.
“Foreign inflows to the stock market originating from Australia indicate a figure of Rs. 626.4 million year-to-date, which is an all-time record for foreign purchases from Australia in a calendar year” the CSE statement added.
Record inflows from Australia also place the country as the 10th ranked contributor in terms of overall net foreign flow in 2017, a noteworthy development considering the fact that an actual outflow of funds to Australia amounting to Rs. 80.2 million was recorded in 2016, it said.
“A strong community of individuals with a Sri Lanka origin eager to look at new Sri Lankan investment opportunities and the celebration of 70 years of diplomatic ties between Sri Lanka and Australia presented the CSE with a unique opportunity to promote the capital market in Australia this year.”