Stock market forecast for Saturday, August 28, 1402 / Is the correction process of the stock market continuing? – Tejarat News
According to Tejarat News, last week, Tehran Stock Exchange showed a glimpse of its old title of “being leader-oriented” once again. What caused a completely red week was the high impact of the market as a whole from the margins related to car manufacturers.
Stock market transactions were closed on the last day of the week in such a way that the total index, as always, took the path of decreasing height. So that the main index of the glass hall faced a drop of 4,497 units, which is equivalent to 0.23% of this index. Based on this, the total index stood at the level of one million and 973 thousand units at the end of trading on Wednesday.
The balance index also moved with the total index command. In this way, the index of small and medium-sized companies of the market could not increase its height and reached the level of 684 thousand 957 units with a decrease of 0.32 percent.
In line with the prediction of the stock exchange in the coming week, experts believe, how will the movements of the dollar proceed with regard to the meeting of Amir Abdollahian with Mohammad bin Salman. After the meeting with Bin Salman, the foreign minister said in a tweet: frank, open, beneficial and productive dialogue, based on the neighborhood policy. With the will of the heads of the two countries, stable bilateral relations were emphasized in all fields.
Tehran Stock Exchange under the microscope of statistics and figures
It should be mentioned that the board of Tehran Stock Exchange shows the volume of transactions on Wednesday at 5.8 billion shares and the value of small transactions (shares, preemptive rights and mutual funds) at 3.439 billion tomans. It should be noted that this number is the lowest number in the last eight months.
The investigation of the ownership statistics of real people at the end of last week indicates the withdrawal of real people’s capital from the stock market. The capital inflow and outflow index at the end of the stock exchange reports the outflow of 235 billion tomans from shares, preemptive rights and equity funds.
Automobile manufacturers accused of the first row of negatives last week
At the beginning of trading on Monday, IRNA published another news that shook the hearts of automobile shareholders. Apparently, in the meeting of the Competition Council on August 21 (four days before the news was published), the market of all cars, including manufactured, imported and assembled cars, was given a monopoly seal. This means that these three categories of cars are included in the mandatory pricing.
Until now, the shareholders were hoping that the new decision of the Central Bank, which required car manufacturers to provide the required foreign currency through their own export currency or other exporters, would lead to the creation of a process to eliminate mandatory pricing.
Another news that made the sentiment of the market negative last week was the announcement of the decision of the admissions board of the stock exchange. Based on this, the two car manufacturing giants of the country have until the beginning of August next year to stay on the stock market and withdraw from Article 141.
In the text of this announcement, it is mentioned that in accordance with Part “C” Clause 5, Article 41 of the Guidelines for Acceptance of Securities in Tehran Stock Exchange, until the end of July 1403, in order to submit audited annual financial statements for the financial year ending on 12/29/1402 to Iran Khodro companies. And Saipa gave an opportunity to withdraw from the inclusion of Article 141 of the legal bill to amend a part of the trade law.
According to Article 141 of the law, if at least half of the company’s capital is lost due to the losses incurred by the company, The board of directors is obliged to immediately convene an extraordinary general meeting of shareholders to decide the issue of liquidation or survival of the company. Now the same thing has happened to these two big Iranian car manufacturers and their debts are more than half of their registered capital.
But the issue that forced the car group not to react so seriously to this news is the non-reevaluation of the assets of car manufacturers since the past years. In this way, in case of revaluation of the assets of car manufacturers, it is unlikely that the two car manufacturers of the country will be subject to Article 141 of the law amending a part of the trade law.
Stopping the implementation of export duties
The approval of export duties was notified to the country’s customs not long ago. According to the approval of the export duties of raw and semi-raw materials, the export duties of steel ingots were increased from half a percent to 2 percent. This means a fourfold increase in export duties for these goods. This decree also set the export duty of pellets and concentrates at 20%. At that time, experts believed that with the current prices in the world market, the export of these products has no economic justification.
Ali Akbar Shadmani, Director General of the Customs Export Office, by referring the temporary order issued by the Court of Administrative Justice to all the country’s customs offices, announced the suspension of the implementation of the export duties of raw and semi-raw materials to the customs offices.
Therefore, it is expected that the market’s reaction to this news will be an increase in favor and demand on the side of export-oriented companies.
Saturday stock market forecast
The Saturday stock market is usually greatly influenced by the determination of the interbank interest rate by the central bank. Therefore, based on what was reviewed, in order to predict the next week’s stock market, one must first evaluate the increase or decrease in the interbank interest rate. If this rate decreases, buyers will have more incentive to enter the market, but this alone is not enough. After that, the movements of the dollar are very important in determining the direction of the stock market.