Corporate earnings up 170% to Rs. 35 b in Sept. Qtr.

CORPORATE earnings reported for the quarter ended September 2010 of 217 listed entities record a year on year growth of 170% as against the market earnings of September 2009 reaching Rs. 35 bn as against Rs. 13 bn in September 2009 continuing to build on the turnaround triggered in the latter half of 2009.

Acuity Stockbrokers in a special review said that 36 companies or 16.6% of the 217 surveyed have reported losses while the majority has reported sound growth levels.

“Despite the losses made in a few companies all sectors have contributed positively to market earnings with telecom, land and property, plantations, tourism, power and energy indicating a strong turnaround in earnings potential,” Acuity Research team said.

It said key sectors that have contributed to the quarter earnings were Banks, Finance and Insurance amounting to 26.7% of total while the Diversified sector brought in 17.7% and Food, Beverage and

Tobacco sector contribution amounted to 11.8% and Telecommunication 7.8%. Seven key sectors account for 81.4% of the total earnings generated during Q3 2010 i.e. Banks and Finance, Diversified, F&B, Telecom, Manufacturing, Investment Trust and Hotels and Travel.