COMMERCIAL CREDIT

Sisivitha · 1 COMMERCIAL CREDIT Wed Oct 07, 2015 1:49 pm

Sisivitha

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WHY COMMERCIAL CREDIT IS NOT MOVING THESE DAYS ?
WILL IT COME DOWN FURTHER AFTER THE BUDGET .

capitallinkceylon · 2 Re: COMMERCIAL CREDIT Wed Oct 07, 2015 3:30 pm

capitallinkceylon

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after the budget it will come down further but if they manage to put out a improved performance i think price will stabilize at current levels.

EquityChamp · 3 Re: COMMERCIAL CREDIT Wed Oct 07, 2015 3:34 pm

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Why it should come down after budget?

capitallinkceylon · 4 Re: COMMERCIAL CREDIT Wed Oct 07, 2015 3:46 pm

capitallinkceylon

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i think from the budget they will try to solve the BOP crisis we're facing rite nw. One issue is large number of vehicle imports. They will crack down on it, which will result in leasing facility growth coming down.
There's a major pressure on interest rate to move up also, but still current regime is resisting the temptation to hike up the rate. Interest rate hike will automatically negatively impact CSE not only COCR. Interest rate hike will also negatively impact the credit growth most financing companies were experiencing for the last few yrs.

EquityChamp · 5 Re: COMMERCIAL CREDIT Wed Oct 07, 2015 3:53 pm

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There are more variables than that. Even if the rate is increased what if new opportunities arises in the economy than now for new investments. COCR is not depending on leasing business but they are well diversified now like Central Finance. Generally if you look at all financial institutions for the last 10 years and compare the PAT with interest rates you can see PAT has been growing continuously despite the interest rate cycle. Stock market showing negative correlation to interest rate changes is something different that the individual companies can't mitigate.