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
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

සිංහල පරිවර්තනය
Submit Post
Submit Post

Latest topics

» BFN බොරු සෙලින් දාලා කොහොම හරි 11 වගේ ගානට 500000 එකතු කරගන්න කියලා අර 14 ට ලක්ශයක් සෙලින් දැම්මේ මේ ටේලර් මහත්තයාම තමයි
by sanjulanka Today at 12:48 pm

» Central bank Issue
by Uaecoindubai Today at 12:41 pm

» Buy When There's Blood in the Streets
by Uaecoindubai Today at 12:20 pm

» 8 Finance companaies to be closed very soon
by Uaecoindubai Today at 12:17 pm

» Please DON'T SELL IN PANIC, BUY, ONLY A SMALL INCIDENT, IT'S COMPLETELY OVER!!!!!
by Uaecoindubai Today at 12:14 pm

» Market will test 4700
by Uaecoindubai Today at 12:08 pm

» Why AAIC Should trade above RS.50/-
by wisdom79 Today at 11:01 am

» HOTEL INDUSTRY
by Yahapalanaya Yesterday at 10:23 pm

» Look PAP Amazing company
by dmtmadusanka Yesterday at 4:15 pm

» Commencement of Trading at CSE
by Uaecoindubai Yesterday at 3:58 pm

» Good news from JKH : Will this be the market mover ?
by gjooos Yesterday at 1:06 pm

» whats the purpose of Bomb blasts?
by sanjulanka Yesterday at 9:11 am

» Best Free forex signals provider
by Uaecoindubai Sun Apr 21, 2019 3:24 pm

» Chairmam of Sanasa arrested over suspicion of misappropriation of funds
by hammurabi Sun Apr 21, 2019 9:36 am

» Sri Lanka Kattadiyalage Wegapitiya tries to manipulate Household Gas prices in Gas market, Wegapitiya lead LAUGFS Gas in a secret Deal to Bankrupt Government's Litro Gas by affecting 1.3 Million Households and 5 million people in the country
by Uaecoindubai Sat Apr 20, 2019 2:55 pm

» Economic Health of Sri Lanka
by Uaecoindubai Sat Apr 20, 2019 2:30 pm

» What is going on with TFC.N0000
by Uaecoindubai Sat Apr 20, 2019 2:30 pm

» REEF possible run.
by hammurabi Sat Apr 20, 2019 6:50 am

» EAST INTERESTING DAYS AHEAD 25+
by glad Fri Apr 19, 2019 10:40 am

» Weekly Stock Market Roundup
by Insights Equity Fri Apr 19, 2019 8:35 am

» Would CIC make an upward move in the coming weeks?
by hammurabi Fri Apr 19, 2019 12:39 am

» Daily Stock Market Update
by Insights Equity Thu Apr 18, 2019 6:17 pm

» SME M&A opportunity
by raheem72@gmail.com Thu Apr 18, 2019 1:21 pm

» Sri Lanka Hilton Hotels Must Investigate or Oust Unfit and Improper - Kashmi App Bankrupted Sanjiv Alles who hides about his Career in Kashmi for Colombo Hilton Hotel Director Profile
by AmalHoole Thu Apr 18, 2019 12:47 pm

» Why ALHP is having a huge demand despite consecutive losses?
by wisdom79 Thu Apr 18, 2019 11:03 am

» TIME TO LOOK AEL
by sanjulanka Wed Apr 17, 2019 6:42 pm

» HEXP next run up to 120-130
by nishjaya Wed Apr 17, 2019 12:21 pm

» Cabinet nod for Colombo Stock Exchange to be converted to a company limited by shares
by glad Wed Apr 17, 2019 9:30 am

» Lanka Bell to be acquired by Mobitel - Sources
by soileconomy Wed Apr 17, 2019 7:07 am

» Sri Lanka Watapota (WAPO) Guardian Capital lose Rs. 10 Mn of Funds because of Kashmi App Closed down, Kashmi Co-Founder Bankrupt Sanjiv Alles now landed on Hilton Colombo Director Board owned by Yahapalana Government
by AmalHoole Tue Apr 16, 2019 3:17 pm

» සුභ අලුත් අවුරුද්දක් වේවා.
by sanjulanka Mon Apr 15, 2019 12:38 pm

» I bought PCHH.N and SING.N sometimes back?
by hammurabi Mon Apr 15, 2019 12:14 pm

» Highest temperature hike after 128 years in sri lanka
by nimantha80 Sun Apr 14, 2019 4:47 pm

» DEBTS FREE AAIC MUST MOVE UP,3.36BN FROFIT, MARCH Q 1.00BN
by wisdom79 Sun Apr 14, 2019 8:15 am

» VONE , is it time to sell or holds
by Uaecoindubai Sat Apr 13, 2019 1:27 pm

» HVA WILL THEY RECTIFY THE REGULATORS QUARIES BEFORE DEAD LINE?
by nimantha80 Fri Apr 12, 2019 3:12 pm

» NDB Leasing Centers open at Gampaha, Negombo
by Uaecoindubai Thu Apr 11, 2019 8:17 pm

» I met Karuna Today.
by Uaecoindubai Thu Apr 11, 2019 8:15 pm

» Look APLA its trending to 98LKR
by Uaecoindubai Thu Apr 11, 2019 8:13 pm

» ROYAL CERAMIC (RCL)
by Yahapalanaya Thu Apr 11, 2019 8:11 pm

» Look BPPL company
by Uaecoindubai Thu Apr 11, 2019 10:10 am

» PABC.N0000 ? Will come down to Rs. 11 - 12 level?
by Uaecoindubai Wed Apr 10, 2019 5:13 pm

» Any news on MBSL.N0000
by Uaecoindubai Wed Apr 10, 2019 4:56 pm

» New NDB Privilege Banking and Leasing Centres open in Kurunegala
by Soilconomy Wed Apr 10, 2019 11:30 am

» TIME TO WATCH - LOFC - BFN
by Uaecoindubai Wed Apr 10, 2019 11:20 am

» ශ්‍රිලංකාවේ ණය බරතාවය. Sri Lanka's Debt Trap
by soileconomy Wed Apr 10, 2019 7:28 am

» 2019 revised traffic fines
by Uaecoindubai Tue Apr 09, 2019 12:47 pm

» LLUB Surprise
by hammurabi Mon Apr 08, 2019 9:29 pm

You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market Talk » Indonesia market woes seen as opportunity for long-term investors

Indonesia market woes seen as opportunity for long-term investors

Go down  Message [Page 1 of 1]

ruwan326

ruwan326
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Indonesia has been among the hardest hit Asian markets after a global sell-off in emerging- market bonds triggered by higher US interest rates and a stronger greenback.
The country’s stock market has also taken a beating. Foreign investors sold a net US$272.8 million of Indonesian stocks between June 18 and June 22, the highest since the week ended April 27, Malaysian Industrial Development Finance Berhad says in its June 25 ASEAN fund flow report.
According to at least one market participant, the stock market correction provides an opportunity for fund managers to buy quality companies at a cheaper valuation.
Kemal Razindyaswara, investment analyst – equities at Aberdeen Standard Investment, believes the negative market sentiment on Indonesia is similar to the wider view on emerging markets.
“Particularly for Indonesia, a combination of weakening rupiah, rising oil price, rising bond yields, risk of politics/election, and the relatively weak consumption recovery has been the general theme of late,” he tells Asia Asset Management.
Mr. Razindyaswara notes that Bank Indonesia, the central bank, has been proactive in addressing the country’s macroeconomic situation, such as by raising its policy rate twice over the last month to stabilise the currency.
“The risk of a weaker rupiah could be felt much later on as the rising import costs of raw materials could give downside surprise towards inflation,” he says.
He is optimistic about the outlook for the country. He says Indonesia is in “a much better shape now” compared to during the time of the so-called taper tantrum in 2013-2014, when it had a current account deficit of over 3% of gross domestic product, compared to the 2.2%-2.4% forecasts for this year.
The taper tantrum refers to the panic selling after then US Federal Reserve Chairman Ben Bernanke hinted in May 2013 of a reduction in monetary stimulus.
Mr. Razindyaswara believes the core strategy to navigate the market is to continue holding quality companies with a “strong moat” to shield long-term profits and market share from competitors.
“The market correction provides opportunity for long-term investors like us to buy quality companies at a more palatable valuation,” he says. “For example, we remain constructive on Bank Central Asia which is a beneficiary of rising rates given its low-cost funding structure as a result of its strong transaction banking franchise.”
According to Mr.Razindyaswara, companies that earn in US dollars will generally benefit, such as exporters and commodities-related companies. These include companies such as United Tractors and Indo Tambangraya Megah.

ruwan326

ruwan326
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
@ruwan326 wrote:
Indonesia has been among the hardest hit Asian markets after a global sell-off in emerging- market bonds triggered by higher US interest rates and a stronger greenback.
The country’s stock market has also taken a beating. Foreign investors sold a net US$272.8 million of Indonesian stocks between June 18 and June 22, the highest since the week ended April 27, Malaysian Industrial Development Finance Berhad says in its June 25 ASEAN fund flow report.
According to at least one market participant, the stock market correction provides an opportunity for fund managers to buy quality companies at a cheaper valuation.
Kemal Razindyaswara, investment analyst – equities at Aberdeen Standard Investment, believes the negative market sentiment on Indonesia is similar to the wider view on emerging markets.
“Particularly for Indonesia, a combination of weakening rupiah, rising oil price, rising bond yields, risk of politics/election, and the relatively weak consumption recovery has been the general theme of late,” he tells Asia Asset Management.
Mr. Razindyaswara notes that Bank Indonesia, the central bank, has been proactive in addressing the country’s macroeconomic situation, such as by raising its policy rate twice over the last month to stabilise the currency.
“The risk of a weaker rupiah could be felt much later on as the rising import costs of raw materials could give downside surprise towards inflation,” he says.
He is optimistic about the outlook for the country. He says Indonesia is in “a much better shape now” compared to during the time of the so-called taper tantrum in 2013-2014, when it had a current account deficit of over 3% of gross domestic product, compared to the 2.2%-2.4% forecasts for this year.
The taper tantrum refers to the panic selling after then US Federal Reserve Chairman Ben Bernanke hinted in May 2013 of a reduction in monetary stimulus.
Mr. Razindyaswara believes the core strategy to navigate the market is to continue holding quality companies with a “strong moat” to shield long-term profits and market share from competitors.
“The market correction provides opportunity for long-term investors like us to buy quality companies at a more palatable valuation,” he says. “For example, we remain constructive on Bank Central Asia which is a beneficiary of rising rates given its low-cost funding structure as a result of its strong transaction banking franchise.”
According to Mr.Razindyaswara, companies that earn in US dollars will generally benefit, such as exporters and commodities-related companies. These include companies such as United Tractors and Indo Tambangraya Megah.

Opportunity for long-term investors  Very Happy Very Happy Very Happy Very Happy Very Happy

Back to top  Message [Page 1 of 1]

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