Dr. Amunugama tells domestic investors to give up “waiting”; learn from foreigners and buy

Monday, 24 December 2012 00:00 - - {{hitsCtrl.values.hits}}

The record foreign inflows to the Colombo Bourse and lackadaisical attitude from local investors appear to have received the attention of the Government.

On Saturday, Senior Minister for International Monetary Cooperation and Deputy Finance Minister Dr. Sarath Amunugama referred to this during a public function of the Securities and Exchange Commission.

Noting that the Colombo stock market has always given good returns to investors in the long run, far exceeding that of conventional savings methods, Dr. Amunugama said prices of most stocks are currently quite attractive, with overall forward P/E ratio of the market being less than 15 times.

“This is one reason why in 2012 we saw the highest=ever net foreign inflow of Rs. 37 billion. These foreign investors have seen the potential of the market and have entered at the right time. We urge the domestic funds and investors to study and understand the behaviour of the foreign investors and exploit the opportunity without waiting further,” Dr. Amunugama emphasised during his speech at the ceremony to award certificates to over 800 students who successfully followed SEC’s Capital Marketing Education and Training Division programs.