Saturday stock exchange forecast / What effect does the exchange rate have on the stock market?

According to Tejarat News, the stock market at the end of today’s trading grew by 0.58 percent and the homogeneous index by 0.77 percent. Experts believe that the stock market will take a balanced upward trend on Saturday.

Amir Topchipour in an interview with Tejarat News about the currency exchange circular of banks says: reducing the gap between the exchange rate in the free market and the rate announced by the government can lead to transparency and have a positive effect on the capital market.

The expert says about the market forecast on Saturday: The automotive group was well received today due to the positive news of Borjami and the launch of one of Saipa Group’s products. The group is expected to be in good shape on Saturday as well. In this case, Khodro and Khasapa, as the leaders of this group, can start an upward trend in 1401.

He continues: The symbols of the banking group must be clarified by Saturday so that we can see the reopening of these symbols before the end of the year. Reopening without volatility of these symbols is important and it is expected that this group will be well received and the demand in this group will increase.

Topchipour explains: The exchange rate is also one of the main components affecting the accounting profit of banks, including the mandatory rates. Increasing this rate and getting it closer to the free market rate is positive news for the banking group because it increases the income and profit of some banking symbols.

The capital market expert points to the tax resulting from the increase in the exchange rate for the government: According to government policies, which will open a special tax collection account next year. This seems to be more for tax purposes. In this case, part of the income for banks will be collected as tax.

What effect does the exchange rate have on the stock market?

Topchipour emphasizes: Of course, the profit from exchange rate fluctuations is accounting profit and does not create operating cash for banks. Also, according to this directive, the profit from foreign exchange cannot be divided, but it can be used to increase the bank’s capital. Also, if the bank is at a loss, it will reduce the accumulated loss and performance loss.

Referring to the currency exchange process, he states: “Different companies can have receivables and liabilities based on foreign currencies, which must be calculated in the currency of the country, ie Rials, and recorded in the financial statements.” Rising exchange rates have a positive effect on the financial statements of companies with higher foreign receivables and assets.

This capital market expert explains the impact of the increase in the exchange rate on Bank Mellat: Bank Mellat has a positive currency balance of seven billion dollars in the stock market, which earns the most profit. Also, moving towards eliminating mandatory pricing and creating transparency in the capital market is a positive development that has more visible effects in the long run.