Best times are still ahead for local investors in the capital market, according to a capital markets expert.
"There will be tremendous opportunity for local investors to enter the market in a matter of time," Ravi Abeysuriya, Managing Director, Amba Research Lanka, told The Sunday Times FT. He explained that there is a lot of panic selling in the global capital market at present.
"The world is heading for a recession. Therefore people are already moving out of the capital market and seeking liquidity. This will prompt them to get into more liquid based assets like cash. In this environment foreign investor interest will be low," he said. He said the local market is also mirroring the global impact of the market and that this situation will present a great chance for the local investors to enter the local market in a matter of time."Our valuations of certain firms -- especially the ones paying high dividends -- are good buys in time to come," he said.
Mr. Abeysuriya said presently the recession has not hit, but it will come. "Then the firms will have a serious impact. So it is the timing that matters. The people have to await the right opportunities to get into the local market," he added.