Monday, 19 May 2014 00:14
Corporate earnings for the quarter ending March 2014 have been broadly positive so far, according to Acuity Stockbrokers.
It said approximately 60% of the 66 corporates that have reported earnings thus far have recorded year on year gains. Acuity also said the markets since mid-March have been on an uptrend as investor sentiment has rebounded on the back of lower interest rates and an easing off of the foreign equity selloff.
Prime lending rates have declined 134bps since January while rates on Government securities have declined between 97-127bps. “The foreign equity sell-off that dominated the early part of the year meanwhile, has reduced significantly with net foreign outflows declined to Rs. 0.35 b in April (from Rs. 5.10 b in February) and has recorded a net inflow of Rs. 7.88 b so far in May,” Acuity said. “We expect market sentiment in the week ahead to be largely determined by the Central Bank’s rates decision,” Acuity added.