The Budget did have a shock for some of the companies especially the Banks and top tier NBFIs with the surcharge.
Mkt expected to initially react negatively on opening but expected to recover once investers realize the future earnings on most companies are not adversely effected by the budget.
Banking & NBFLs are already trading at heavy discounts so the panic selling could ease off but what has to be watched is the foreign selling with the low country ratings that directly has an effect on Banks.
Longer term Kerbside chatters tell us that companies like EXPO will probably seek a listing in other territories as increasingly EXPO is more international than local in their earnings.
Separately the Bond Folk may well be rushing to Court or at least to Legal Offices to spend more
Money in securing the principal amount cut a Lkr 8.5 billion that Basil wishes to in effect confiscate!
As Dr Hook sang, “better luck next time baba”
