CSE edges past 6,800 points

Monday, 4 August 2014 00:18 - - {{hitsCtrl.values.hits}}

By Acuity Stockbrokers The benchmark ASPI closed on a high note last week, with the Index closing 3 points lower than its mid-week high of 6,813.9 points. Sustained buying interest coupled with positive corporate earnings helped the main share index push past the 6,780 levels it was consolidating at last week. The Y-T-D return on the Bourse consequently increased to 14.1% cf. 8.3% in the comparable period last year and full year return of 4.0%. Although the week’s daily average turnover levels were lower due to profit taking on selected counters, net foreign inflows continued unabated helping push the Y-T-D net inflow position to Rs. 10.54 billion.

Approximately 11% of corporate meanwhile, have released earnings for the quarter ending June 2014, and more than half of these have indicated Y-o-Y gains in earnings. Counters in the Banking & Finance, Manufacturing and Beverage, Food & Tobacco sectors have recorded Y-o-Y gains, while counters in the Plantations sector have recorded a Y-o-Y decline in earnings. Although we expect continued profit-taking in the week ahead, steady buying interest by institutional and corporate earnings flow are likely to buoy markets.