situation discounted by investors
In a bid to promote foreign direct investments and expand its foreign
portfolio, Asia Capital and its subsidiary, Asia Securities signed
an agreement last Friday with Auerbach Grayson and Co, a New York-based
brokerage firm that specialises in international securities trading
for US institutional investors.
Lanka was missing from our network and during the last 12 months
we have had around 10 requests from our top clients to provide direct
access to the Sri Lankan stock market,” David Grayson, co-founder
Auerbach Grayson told The Sunday Times FT. He said that Auerbach
Grayson clients wanted to enter the Sri Lankan market because it
is ‘relatively undiscovered’ and companies ‘undervalued’.
“Many westerners are not aware of a market here and our clients
want to go to places where there are little foreign investments
and where companies are relatively ‘undervalued’ and
they want to go there early to realise the best value,” he
his personal opinion Grayson said he doesn’t believe there
will be a civil war in the country. “I don’t believe
there will be a civil war in Sri Lanka and the political problems
together with the chances of a war is discounted by investors today.
We do business in 95 countries and half of them are in emerging
markets and we also have businesses in war-torn countries. So largely
the war situations, if they are to happen are discounted by the
investors,” he explained.
said that in a month’s time there will be orders flowing into
Asia Capital and the Auerbach Grayson clients are looking to invest
in banks and telecom companies. “They will not be interested
in smaller companies, unless it is a particularly special case such
as its growth potential and we will be able to see some orders flowing
within the next 30 days,” he said. Dihan Dadigama, Associate
Director Asia Capital said this is the first time a local stock
brokering house has tied up with a US brokerage.