Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

Sri Lanka Equity Analytic
සිංහල පරිවර්තනය
Search
 
 

Display results as :
 

 


Rechercher Advanced Search

Latest topics

» ALHP WILL MOVE UP SOON
by Prabodha Yagoda Today at 11:37 am

» Daily News Bulletin | දිනපතා ප්‍රවෘත්ති
by Sstar Today at 9:05 am

» VONE , is it time to sell or holds
by sameboy Yesterday at 11:42 pm

» Tips For Avoiding Excessive Trading ;)
by CubedSol Yesterday at 2:15 am

» IMPACT OF ELECTION RESULTS - one more hour to analyse
by soileconomy Fri Feb 16, 2018 9:22 pm

» Keep Eye on RIL
by Ran49 Fri Feb 16, 2018 5:52 pm

» Risk Management !!!!!!!!!!!!!!!!!!!>>>>>>>>>>>>>>>
by wiser Fri Feb 16, 2018 3:53 pm

» Wiser's TA Chart Room
by wiser Fri Feb 16, 2018 3:01 pm

» GREG & TAP DISCLOSE
by wiser Fri Feb 16, 2018 2:03 pm

» SCAP - SOFT LOGIC CAPITAL
by Ran49 Fri Feb 16, 2018 7:08 am

» Thx for all...
by Uaecoindubai Thu Feb 15, 2018 7:07 pm

» Implication to CSE if UNP form a government its own??
by samaritan Thu Feb 15, 2018 4:51 pm

» A free mastercard and free 10 coins...hurry up
by Uaecoindubai Thu Feb 15, 2018 3:08 pm

» New ICO..earn 400 USD free
by Uaecoindubai Thu Feb 15, 2018 1:07 pm

» Does anyone know the website to get the stock forecast, finance and other details
by noels Wed Feb 14, 2018 8:13 pm

» Ainv and building collapse
by TuTanKaman Wed Feb 14, 2018 7:17 pm

» LIOC share future
by TuTanKaman Wed Feb 14, 2018 6:40 am

» srilankan politics
by sureshot Tue Feb 13, 2018 9:48 pm

» What happened to Janashakhi.... I sold 2 weeks ago. Total gain i lost over 150000
by Harry82 Tue Feb 13, 2018 9:44 pm

» Why locals still hesitate to buy?
by mark Tue Feb 13, 2018 9:26 am

Forum Disclaimer

The information contained in this forum have been submitted by third parties directly without any verification by us. The information available in this forum is not researched or purported to be complete description of the subject matter referred to herein. We do not under any circumstances whatsoever guarantee the accuracy and completeness information contained herein.

www.srilankaequity.com its blogs, forums, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not in any way be responsible or liable for loss or damage which any person or party may sustain or incur by relying on the contents of this report and acting directly or indirectly in any manner whatsoever.

Trading or investing in stocks & commodities is a high risk activity. Any action you choose to take in the markets is totally your own responsibility, www.srilankaequity.com its blogs, forums, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information. The information on this website is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. The writers may or may not be trading in the securities mentioned.

You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market News » HSBC shuffles frontier market picks, upgrading Sri Lanka and cutting Vietnam

HSBC shuffles frontier market picks, upgrading Sri Lanka and cutting Vietnam

Go down  Message [Page 1 of 1]

VALUEPICK

avatar
Expert
Expert
http://www.cnbc.com/2016/05/06/hsbc-shuffles-frontier-market-picks-upgrading-sri-lanka-and-cutting-vietnam.html

HSBC is turning positive on Sri Lanka as a frontier market pick, but it's lowering exposure to Vietnam after the recent rally.


HSBC's upgrade of Sri Lanka's upgrade to "positive" from "negative" may surprise some. The country only reached an agreement with the International Monetary Fund for a $1.5 billion bailout last month after foreign exchange reserves dwindled amid a slump in exports.


While HSBC acknowledges Sri Lanka's rising fiscal and external vulnerabilities, it believes all the negative news is now priced in.


"The deal is a good opportunity for the government to replenish its forex reserves, ease the debt burden and pursue long-term fiscal and macro reforms," HSBC said.


And for stock investors, HSBC noted that the last time Sri Lanka received a tranche of a loan from the IMF, in 2012, the local stock market rose 42 percent over the next six months.


HSBC also expects company earnings have bottomed and will see some improvement, while the market's high dividend yield of over 3 percent should attract yield-seeking investors.


Among market sectors, it expects Sri Lanka's construction and building materials industries will benefit from the restarting of several stalled infrastructure projects. Tourism is also a focus, it said.


Tourist arrivals in 2015 climbed nearly 18 percent from 2014, reaching more than 1.8 million arrivals, nearly quadruple the level a decade ago, according to government data.


When it comes to economic growth, HSBC expects that will depend on whether infrastructure projects restart, forecasting gross domestic product (GDP) expansion will slow to 4.7 percent, compared with a previous forecast for 6.3 percent.


The Colombo Stock Exchange All-Share index is down more than 4 percent so far this year after tacking on more than 8 percent so far this quarter.
But while it is turning more positive on Sri Lanka, HSBC has downgraded Vietnam, another frontier market to "neutral" from "positive."


"We continue to regard Vietnam as one of the better-managed frontier market economies in the world and remain positive about its long-term story," it said. "However, following the recent rally we think the market is now relatively expensive compared to its peers and also lacks any near-term catalyst."
It noted that the VN Index is up more than 15 percent since it hit a trough in mid-January after the U.S. Federal Reserve hiked interest rates in December.
Additionally, HSBC said it has cut its full-year gross domestic product (GDP) growth forecast to 6.3 percent for this year from 6.7 percent previously as government funding constraints are likely to slow public investment.


The pace of reforms in the country has also been slower than expected, and with a new government "settling in," not much progress is expected near term, HSBC said.

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum