Corporate earnings to increase
Charumini DE SILVA
The CSE has been able to capture more attention and interest in
foreign investments compared to the regional markets.
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Jayantha
Perera |
There will be a 40 percent growth in the earnings of listed companies
in the Colombo Stock Exchange (CSE) whereas the listed companies in the
regional countries will record a growth of around 18 to 22 percent for
this year.
Speaking to the Daily News Business Richard Pieris Securities CEO
Jayantha Perera said the country indicates a positive economic outlook
with the low interest rate regime encouraging tax system. “The growth
momentum will continue,” he said.
The listed companies and investors will benefit remarkably while
contributing immensely to enhance the economy.
The expected earnings in the market are trading currently at a price
earning multiply of around 14 times.
“Investors are coming back and little collections on certain counters
such as banking, food and beverage and retail sectors are noticed. Since
the commodity prices have increased these counters have attracted an
impressive number of investors. The overall market will re-bound fully
at the beginning of May. Currently, there are a flock of buyers, but not
enough sellers. This generates a lower daily turnover in the market,” he
said.
There will be a number of upcoming Initial Public Offerings (IPOs) in
the next few months and those who will not enter the capital market
within the next couple of months will definitely regret.
The existing companies and the investors are harnessing high returns
on their investments. There will be around four IPOs lined up for the
next three months and this indicates the confidence level of both
foreign and local investors over the CSE.
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