Unfortunately, I have to admit that I have some exposure to Swiber plus some stocks, and shares in the coal and oil sector, but those were limited and the harm had been well-controlled in my portfolio. None of the 3 local banking institutions were in my top 30 holdings as I preferred finance companies also.
For this month, I have attended the following AGMs/EGMs/briefings – SMRT, Azeus, CapitaLand Commercial Trust, MapleTree Industrial Trust, Pollux, KSH, MYP, Jason Marine, King Wan, TSH, Fischer, and MTQ Tech. For my top 30 holdings, not much changes except a few movements and there here. Tat Seng and First REIT were in to the list due mainly to discuss price outperformance back.
First REIT results were in line and DPU is constantly on the increase. Keppel T&T also announced decent results and comprehensive plans to create Data Center money. SGX did not fare as well as they announced smooth full-year income, and the marketplace disappointed with no dividend increase. This month – Pteris Global and Pacific Healthcare I have accepted the next voluntary delisting/cash offers.
I also have subscribed to the following rights issues – Noble and Ezion. Next month will be another reporting season as companies with a financial year ending 31 December 2016 will be confirming their half calendar year results. Also, 12 months closing 30 June 2016 will be confirming their full-year results companies with financial. I will be going through a few of these results release. I am going to also do some catch-up readings on some periodicals, books, and magazines related to investment.
That will lead to lower interest rates, without having to borrow funds from overseas. And instead of repaying the loan in dollars or any other form, the national authorities will have to repay the loan in rupees, which as we will see, makes enormous sense. Borrowing in dollars is expected to be cheaper, and hence, bring down the eye that the government will pay on its personal debt.
But this comes with a corollary. Assuming the borrowing is within US dollars, the rupee is likely to depreciate against the buck in the long-term considering that India’s inflation is significantly higher than that of the united states. Then your lower interest rate cost will be more than made up for by the federal government needing more rupees to buy dollars to repay the loan as well as pay interest onto it. So, not everyone is happy with your choice of the nationwide federal government to borrow abroad. You will find other negatives that come attached with any country borrowing overseas also.
First and foremost, it shall lead to the rupee appreciating against the buck, at least in the short-run. When the bonds are sold and the dollars (or any other foreign currency for that matter) are cut back to India, they shall have to be converted into rupees. This will push up the demand for rupees and finally lead to the rupee appreciating in value against the dollar. In the short-term, an appreciating rupee will hurt India’s exports, that are struggling already.
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It will also make imports cheaper and harm domestic producers contending against them. In the recent past, India has gone back again to a policy of protectionism. Hence, there’s a lack of plan consistency as far as the federal government can be involved here. And some economists are worried about the currency risk that accompanies any foreign borrowing also. Media captionWhat is really happening with India’s economy?
When authorities borrow in the home money – like the Indian federal government borrowing in rupees – it always has the option of printing money and repaying the debt – or what economists call inflating the debt away. That option doesn’t can be found when the borrowing is not in the domestic currency. India’s central bank or investment company cannot create dollars out of thin air. It can only print rupees. In fact, many countries have encountered financial crises in the past because of their inability to repay money lent in a fire. This probability has some economists worried. Is India exaggerating its economic growth? How will Modi manage India’s overall economy?