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IPL - What the F*and%....

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DCTrader
Super Contributor
Any ideas as to why the wheels have fallen off this one?
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5 REPLIES 5
topgun
Super Contributor
perceived interest rate vulnerability of the vehicle dealerships to a possible rise in rates owing to CPI target breach. financing margins might also be affected - see bank index behaviour today. kneejerk reaction probably overdone. strong commercial vehicle sales will cover the shortfall in passenger sales. OMO
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Not applicable
Might also have a cyclical element; other logistics players like Gnd and bvt also been going thru a patch of rough (bvt's last week). Still expect ipl to close above 150.
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asylum
Super Contributor
Topgun tito does not need to raise rates to curb spending the econemy is doing it all by itself, petrol to rise to R7,27 Eskom to raise elec by 18% foodstuff going through the roof and so on if they put up the rate the econemy might as well stop!
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topgun
Super Contributor
I fully agree Asylum. Monetary policy decisions are forward looking. Tito knew in Feb that CPI upper limit would most probably be exceeded. Int. rates cannot influence fuel prices or food CPI only domestic demand which is already cooling as you noted. A rate hike now would therefore be foolish - but you never know!!
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Airborn
Contributor
Most likely dicounting the change in leadership from Lynch retiring!! New CE (Brody) appointed and the share should pick up if the market has any faith in his leadership ability.
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