Will the stock market forecast for Wednesday 18 August 1402 / Baharestan change the direction of the capital market?
According to Tejarat News, Tehran Stock Exchange on Tuesday faced a wave of sales created by suppliers. The conditions were different in the car group up to the middle of the market. However, the negative sentiment spread to this industry as well, and automotive icons became negative.
Changing the trend of the stock market by canceling the feed rate approval?
On Tuesday, two important news were transmitted from Baharestan Street to Saadat Abad Hall. First, during the transactions, it was announced that according to the vote of the representatives in today’s public meeting of the parliament, the Ministry of Oil was obliged to hand over the shares of its refineries and petrorefineries within the time frame approved by the National Financing Council.
However, some experts believed that today’s decline in stock market indices is not related to this resolution, and the issue of uncertainty in the capital market has always been raised.
The more important news was published after the end of trading. Mohsen Alizadeh announced in a tweet: Finally, after many and repeated follow-ups, the board for the implementation of government approvals with laws declared the approval of feed rates for industries and petrochemicals to be illegal and invalid.
Positive news of the parliament for the market
In this regard, Fardin Agha Bozouri said in a conversation with Tejarat News: The root of the sudden negative correction of the market on Tuesday goes back to the words of some officials regarding the cancellation of the formula for setting industrial rates. But the news of the Parliament Implementation Commission is considered very positive news for the market, and most likely, the last day of the week will lead to a growth similar to the growth of Saturday this week for the indexers of the glass hall.
This capital market expert added: Based on the documents, the legislative procedure and the way of approving laws and regulations, the Islamic Council approved the general budget bill of 1402, amounting to 84 thousand billion tomans. However, the Implementation Commission has objected to the formulation and implementation of this resolution from a legal point of view.
Is the annulment of the decision to increase the feed rate definitive?
In relation to the question of whether there is a possibility that the resolution will not reach the result of the implementation commission, Agha Bozuri said: There may be no difference in the content of the issue. The Implementation Commission is a sub-commission under the supervision of the Islamic Council. So far, it has not happened that the parliament promulgates a resolution and the government is obliged to implement it, but one of the subcommittees of the parliament cancels it. I hope that this issue will end in their favor as expected by the stakeholders of the capital market and reach a point where the government’s intervention in the petrochemical, refining and steel industries will be reduced.
Agha Bozurgi added: In this case, we will return to the first point, which means that nothing special has happened. The 100-day correction of the capital market occurred following the approval of the industrial feed rate increase. We hope that the issue will be resolved in favor of the shareholders and the capital market, but it is unlikely that the basis of this formulation and calculation formula will change in line with the interests of the market stakeholders.
This expert stated: The source and source of the news of the annulment of the approval of feed rates for industries and petrochemicals by the Board of Implementation of Government Approvals with Laws has not yet been officially determined and this news is being circulated in the media. But we assume that, as the chairman of the Economic Commission of the Majlis had promised, the Implementation Commission has raised a legal objection to this resolution.
Wednesday stock forecast
With the annulment of the decision to increase the feed rate of petroleum refineries, the upward expectations from the market among shareholders and activists are reaching a peak. In May, the two million index entered its 100-day correction with this resolution. Now, if this resolution is removed, the minimum expectations are to return to the level of 2,500,000 units.
It can even be concluded that by canceling this decree, this way of confronting the government’s profit will be extended to other industries as well.
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