Lankan firms line up for Big Apple!

Wednesday, 30 July 2014 00:00 - - {{hitsCtrl.values.hits}}

Biggest ever listed-firms contingent for 4 September Sri Lanka Investor Forum in New York

Political ties with the US may be strained but the Sri Lanka Capital Markets Investor Forum in New York on 4 September will see the biggest ever contingent of listed firms. According to Colombo Stock Exchange (CSE) sources, there will be 15 listed Sri Lankan companies at the forum which will be held at the JW Marriott Essex House Hotel in New York whose nickname is Big Apple. The US event has attracted the highest number whereas past investor fora held in Mumbai, Dubai, Hong Kong, Singapore and London had drawn between eight and 11 companies only.

The 15 confirmed participants are John Keells Holdings PLC, Commercial Bank of Ceylon PLC, Hatton National Bank PLC, National Development Bank PLC, DFCC Bank, Dialog Axiata PLC, Ceylinco Insurance PLC, Hayleys PLC, Access Engineering PLC, People’s Leasing & Finance PLC, Hemas Holdings PLC, Softlogic Holdings PLC, Tokyo Cement Company (Lanka) PLC, Laugfs Gas PLC and MTD Walkers PLC. Several stock broking firms are also expected to join the Lankan delegation. These firms will have a series of one to one meetings with interested US funds, investment bankers and individual investors. The Invest Sri Lanka Forum is a joint initiative of the CSE and the Securities and Exchange Commission (SEC) to woo foreign portfolio investments into the capital market. These events are held in association with Bloomberg. For the US event, the American Chamber of Commerce (AMCHA) is being partnered as well. World famous author of ‘Breakout Nation’ and Morgan Stanley Investment Management Head of Emerging Markets Ruchir Sharma will make a presentation on ‘Perspective on investing in Sri Lanka’ at the New York forum. Other speakers include Senior Minister of International Monetary Cooperation and Deputy Finance Minister Dr. Sarath Amunugama, Central Bank Governor Nivard Cabraal and Permanent Representative of Sri Lanka to the United Nations Ambassador Dr. Palitha Kohona. CSE Chairman Vajira Kulatilaka and SEC Chairman Dr. Nalaka Godahewa will figure in a panel discussion for the benefit of participants including institutional investors from the US.

Capital market investor fora held overseas have been a success in highlighting the post-war rebound and opportunities in Sri Lanka. The CSE has offered a near 15% return year to date making Colombo attractive for investors focussing on frontier or emerging markets. Last year CSE grew by 5%, marking a welcome rebound after two years of negative returns of 7% and 8.5%. Colombo also continues to draw net foreign inflows. So far this year, net inflows are worth Rs. 10.7 billion. In 2013, net foreign inflow to equities amounted to Rs. 34 billion on top Rs. 40.3 billion in 2012. The CSE recently revealed that since the beginning of these international forums, there has been a steady stream of new foreign entrants to the market and renewed interest from existing investors which has increased foreign purchases and net foreign inflows. For example, from Singapore following the Investor Forum, the CSE has observed a net foreign inflow of Rs. 7.7 billion in the first six months of 2014, as opposed to a net foreign outflow of Rs. 2 billion in 2013. From Hong Kong, UAE and Mumbai too there had been net inflows as opposed to outflows in 2013. At the London forum held in June, nine participating Lankan companies held 76 meetings held involving over 150 UK fund managers and investors.