IS PRE-BUDGET FLAGGING THE MARKET?

worthiness · 1 IS PRE-BUDGET FLAGGING THE MARKET? Thu Nov 19, 2015 1:51 pm

worthiness

Senior Vice President - Equity Analytics

Posts : 2577
Equity Stars : 8955
Reputation : 115
Join date : 2011-04-08

Hmm.. overriding the lower resistance levels market is marching forward breaking 7000 index but slowly predicting better business environment after the budget speech. Still unknown the facts directly & indirectly hit the stock market.

Discussions had with business circle hints that government has drawn much attention of past/present difficulties community had been facing in doing business. Observe what & how zero base budgeting presents very soon.

capitallinkceylon · 2 Re: IS PRE-BUDGET FLAGGING THE MARKET? Thu Nov 19, 2015 1:56 pm

capitallinkceylon

Senior Manager - Equity Analytics

Posts : 321
Equity Stars : 3595
Reputation : 8
Join date : 2015-09-17

market will come down on Monday if the predicted increment on corporate tax comes into place.

Hoping they will keep it at the same level at 28%

EquityChamp · 3 Re: IS PRE-BUDGET FLAGGING THE MARKET? Thu Nov 19, 2015 2:01 pm

EquityChamp

Moderator

Posts : 4068
Equity Stars : 15442
Reputation : 1014
Join date : 2014-11-05

capitallinkceylon wrote:market will come down on Monday if the predicted increment on corporate tax comes into place.

Hoping they will keep it at the same level at 28%

28% to 33-35% won't be impacted very much.

worthiness · 4 Re: IS PRE-BUDGET FLAGGING THE MARKET? Thu Nov 19, 2015 2:15 pm

worthiness

Senior Vice President - Equity Analytics

Posts : 2577
Equity Stars : 8955
Reputation : 115
Join date : 2011-04-08

More open market opportunities & monetary policies would lead corporate sector to tolerate 5% increment corporate taxes.

capitallinkceylon · 5 Re: IS PRE-BUDGET FLAGGING THE MARKET? Thu Nov 19, 2015 2:16 pm

capitallinkceylon

Senior Manager - Equity Analytics

Posts : 321
Equity Stars : 3595
Reputation : 8
Join date : 2015-09-17

EquityChamp wrote:

capitallinkceylon wrote:market will come down on Monday if the predicted increment on corporate tax comes into place.

Hoping they will keep it at the same level at 28%

28% to 33-35% won't be impacted very much.

Ar u serious? 33%-35% is a big impact on the economy and company as well in the short run. Most of the countries in Asia has around 30%tax.

In the long run companies n cse should be alright, but short term there will be a dip in the CSE.

EquityChamp · 6 Re: IS PRE-BUDGET FLAGGING THE MARKET? Thu Nov 19, 2015 2:30 pm

EquityChamp

Moderator

Posts : 4068
Equity Stars : 15442
Reputation : 1014
Join date : 2014-11-05

capitallinkceylon wrote:

EquityChamp wrote:

capitallinkceylon wrote:market will come down on Monday if the predicted increment on corporate tax comes into place.

Hoping they will keep it at the same level at 28%

28% to 33-35% won't be impacted very much.

Ar u serious? 33%-35% is a big impact on the economy and company as well in the short run. Most of the countries in Asia has around 30%tax.

In the long run companies n cse should be alright, but short term there will be a dip in the CSE.

Despite short term hiccups it will be absorbed very well. We don't need to worry one week-two week fluctuations but mid term to long term view is important. Reducing government borrowings is one of the key variables for a macro economy the benefits of which will accrue to all companies.

worthiness · 7 Re: IS PRE-BUDGET FLAGGING THE MARKET? Thu Nov 19, 2015 2:44 pm

worthiness

Senior Vice President - Equity Analytics

Posts : 2577
Equity Stars : 8955
Reputation : 115
Join date : 2011-04-08

Yes. Settlement of debts & debt servicing cost due to foreign & local entities is the top burden. Budget should demonstrate how to cope with. That could be painful to corporate sectors & consumers as well.