Thursday Nov 14, 2024
Thursday Nov 14, 2024
Friday, 24 February 2017 00:00 - - {{hitsCtrl.values.hits}}
Reuters: Shares ended slightly firmer on Thursday, further moving away from a more than one-week closing low hit earlier in the week, as better-than-expected corporate earnings boosted sentiment, although concerns over rising rates capped gains.
The Colombo stock index ended 0.14% firmer at 6,138.14. It fell 0.35% on week.
The Bourse will remain closed on Friday for a Hindu religious holiday. “December-quarter earnings helped boost sentiment. Some companies have reported better-than-expected earnings,” said Prashan Fernando, CEO at Acuity Stockbrokers.
Commercial Bank of Ceylon Plc, which posted a 25.8% increase in profit for the quarter ended 31 December, rose 0.63%.
Shares in Lion Brewery Plc jumped 4.9%, while Carson Cumberbatch Plc climbed 4.8% and Hatton National Bank Plc rose 1.7%.
Turnover stood at Rs. 356.4 million ($ 2.36 million), well below this year’s daily average of Rs. 605.6 million.
Foreign investors net bought Rs. 79.5 million worth of equities on Thursday, but they have net sold Rs. 135.5 million worth of shares so far this year.
Yields on Treasury bills have risen to more than four-year highs, while the Central Bank has kept key policy rates on hold.
Even after discounting for political rhetoric (on all sides), economists are convinced that our economy is in a critical stage. This course is the culmination effect of how the economy has been managed over the last few decades. At the same time, we have a banking sector that is among the best in the world – in terms of its spread (profitability) and year-on-year growth! We also see super high growth in the micro finance industry, not forgetting the still thriving informal money lenders!
How does one reconcile this? Banking efficiency – economic inefficiency? Lack of competition? Ignorant saver? Captive borrower? Disproportionate returns to shareholders vs. staff ?
Rings a bell?
