Mr. Raj Rajaratnam, a major investor on the Colombo Stock Exchange (CSE) who is one of the largest shareholder of John Keells Holdings (JKH) with over 15% of the company has been buying into JKH throughout last week when the JKH share price came down to a low of Rs.72.50 during Friday’s trading.

Well informed market sources said that both Rajaratnam and his Galleon Funds had been buying JKH through the week with the Sri Lanka-born investor, who is on the Forbes Rich List, expressing the belief that when asset values become globally cheap, and markets go through cycles of fear and greed with most investors becoming fearful, it is time to buy.

"He thinks the current JKH price is cheap and is a once in a lifetime opportunity to buy more shares of one of the best companies in Sri Lanka," a confidante who had spoken to Rajaratnam last week said.

He had argued that if JKH is buying back its stock at Rs.90 per share, it should be good value at that price. But his purchases last week was at prices lower than that.

Analysts said that the Galleon Funds have seen net inflows into the CSE up to September this year and Rajaratnam’s thinking appears to be that his Funds should take advantage of the opportunity presented by the current global downturn.

"Rajaratnam is looking for blocks in blue chip companies in Sri Lanka," these sources said.

JKH was a heavily traded stock last week when turnover on the CSE was low. The company’s buy-back offer applies to shareholdings as at Oct. 10 and will be open from Oct. 21 to Dec. 4 when it closes.

Under this offer, 4% of individual holdings as at Oct. 10 will be purchased by the company at a Rs. 90 price with JKH directors, who are significant shareholders, not accepting this offer.

According to company sources, many of their international shareholders too will not take it up but with the share hitting a low of Rs. 72.50 on Friday, analysts said that even those confident of the company in the long and medium term have the opportunity of selling down at the Rs. 90 buy-back price and buying back into the company at the lower price levels.