Indian, Chinese investments being finalised
At least three foreign investment teams are in the country finalising strategic investment pertaining to the leisure and financial sectors, stockbrokers said.
“There’s an Indian investor finalizing a controlling stake in a southern hotel. A Chinese team is in town finalising a financial sector investment,” a stockbroker told the Business Times. Foreign participation is mounting and many foreign funds and firms are seeking small stakes in listed firms, he said.
According to the Securities and Exchange Commission (SEC), some 101 foreign funds were approved by them since the beginning of this year. “During the past month some 18 funds were given approval,” a SEC official told the Business Times.
SEC in its last annual report has said that foreign participation increased significantly in the latter half of last year. Overall, foreign investors contributed 25 per cent of the market’s turnover last year. In 2011, it was 11 per cent. The CSE recorded an inflow of foreign capital in that year of US $ 3.8 million – approximately Rs. 38.7 billion, it said. Analysts say that listed firms with strong valuations are attracting new funds owing to the extensive promotions by stockbrokers as well as the stock exchange and SEC since early this year. “Some are buying small stakes but the fact is they are purchasing,” an analyst said.
According to the SEC website, 124 new funds were approved last year. Amongst them are Marlborough Tiger Fund Ltd., Pioneer Multi-asset Income Fund, Origin Funds Public Limited Company, Wasatch Frontier Emerging Small Countries Fund, Marathon New Global Fund Public Limited Company and Universal-Investment-Gesellschaft Mbh For Apt-Universal-Fonds.
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