Asia Securities

We forecast ASPI to reach 7,400-7,600 in 2021, with local investors continuing to carry the mantle. Emerging markets may be ready for prime time in 2021; Sri Lanka will see latent flows compared with peers due to risks. Sector Pick: We see the strong...

As the reality of COVID-19 took form in March, we approached our analysis from a probability-based angle. From 2021 and beyond, we factor in growth above 5.0%. Our main concerns are; 1) ~USD 4.9bn repayments in 2021 and ~USD 4.5bn/year until 2023, 2)...

Sri Lanka went into localised quarantine curfews during the month, as two main COVID-19 clusters emerged. With some of the key business areas under lockdown, economic activity has seen a decline. Our base case forecasts the fiscal deficit to expand t...

Moody’s rating agency downgraded Sri Lanka’s country rating by two notches after placing the rating under review in April, amidst the lockdowns. Sri Lanka is now rated alongside Angola and Ecuador which were also downgraded in recent months by Moody’...

The Central Bank extended the exchange controls imposed in April, aiming to reduce forex outflows which in turn will help maintain reserves and the exchange rate. As such, outward remittances on capital transactions have been limited until January 20...

Equities saw a ‘V-shaped’ recovery in May and June, largely driven by local participation, as foreign investors continued to exit. We highlight eight stocks which hold upside potential in the current environment coming from a mix of value and growth;...