Sep 01, 2017 11:55 AM
ECONOMYNEXT – Profits of companies listed on Sri Lanka’s stock exchange grew by 8.2% in the June 2017 quarter from a year ago with higher commodity and energy prices and floods affecting consumer spending, a brokerage said.
Total June quarter earnings of firms on the Colombo stock exchange of Rs54.9 billion were dominated by a “healthy performance” in the banks sector, up by 23% from a year ago, the food, beverage and tobacco sector, up 54, First Capital Equities said.
The capital goods sector, whose profits rose 23%, insurance firms whose earnings rose 36% and the health care equipment and services sector, where profits grew 22% from the year before also contributed to earnings growth in the quarter, they said in a report.
“However, the earnings growth was partially offset by negative earnings in Consumer Services Sector (-707%YoY), Energy Sector (-129%YoY) and narrowed earnings in Materials Sector (-30%),” it said.
The overall slow growth in the economy, increased commodity and energy prices and continued impact of floods influenced consumer spending, First Capital Equities said.
The June 2017 quarter profit growth was slightly higher than that of the March quarter, of 7.1%, but lower than earnings growth of 10.5% in the March quarter and 26.7% in the December 2016 quarter. (COLOMBO, Sept 01, 2017)