Monday, 10 February 2014 00:09
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First Capital Equities said the companies that have so far released their 3Q2014/4Q2014 quarterly results indicate a sound performance for the period, unfazed by global economic pressures in emerging markets.
Acuity Stockbrokers said corporate earnings for the quarter ending December 2013 have begun trickling in and have, so far, been positive. Just over 10% of corporates have reported earnings and around 59% of these have recorded a Y-o-Y growth.
Counters in the Diversified, Hotels & Travels and Motors sectors, in particular, have reported Y-o-Y gains, while counters in the Plantations and Banking & Finance sectors have reported Y-o-Y declines in earnings.
“We believe that the private placements exercised by the companies will help to strengthen their financial positions by providing the additional funding required for their future operational and investment activities. The private placements will also help to reduce the financial risk of the companies,” First Capital Equities said.
“Against such a backdrop, we advise investors to invest in high quality cash-rich companies with strong balance sheets that have underperformed during periods of market over-exuberance and which have the upside potential to re-rate to their intrinsic values,” it added.
