Wednesday, August 18, 2010

Listed firms perform well: Healthy first half results

Ramani KANGARAARACHCHI

Financial performance of most listed companies have shown positive results during the first six months of the year.

Most of the small companies have also improved remarkably. The entire market despite few exceptions is likely to go up in the next quarter creating a new record and a new era in Sri Lanka.

Daily News Business spoke to several stock brokering companies on the financial performance of listed companies.

Capital Trust Securities, Director Sarath Rajapaksha said sectors such as hotel, banking and finance, telecom and plantation are on the top of the list and some sectors lagging behind during the first quarter have come up during this quarter.

Average profit margins have increased by over 100 percent to 300 percent, he said.

All hotels in Colombo and outstations including small hotels had full occupancy during the first quarter.

Sanjitha Rajasekere of Asia Securities said a number of companies have released their financil results for the first six months.

“When looking at the hotel sector most hotels have improved compared to the previous quarter despite off season. The growth is more than 100 percent and some hotels have improved from a very low base,” he said.

The telecom sector also has shown a very good turnaround due to core businesses.

There is a marginal growth in the subscriber base.

“However, actual results will be seen only later this year,” he said. The banking sector also has reported very good results with atleast a 15 percent growth year on year. The loan book did not grow due to low deposit rates.

Acuity Stockbrokers Managing Director Deva Ellepola said markets moved steadily up to 40 percent and markets are now consolidating based on financial performance of companies.

The banking, hotel and service sectors and selected manufacturing companies performed well in post war situation.

source - www.dailynews.lk

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