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Byline: Andrew McNulty
COMPANY EARNINGS The tide has turned A strong recovery in overall earnings and dividends is helping to improve the value and potential returns from local equities WHAT IT MEANS.
Overall earnings are recovering fast.
Conditions for some sectors are still weak Many of the companies that have published financial results for December 2010 reporting periods produced strong growth in earnings and dividends. Those in the resources and industrial sectors have mostly met market expectations and helped justify the high ratings on the JSE at the beginning of this year.
Strong overall earnings growth has also made the local market look reasonably priced. Earlier this year, the all share index (Alsi) was rated on a demanding historical p:e ratio of almost 18. The Alsi has remained flat over …