Interest Rate Cut While Market Rise?
- In addition to its importance in the banking structure, market experts hold the belief that the lowering of the interest rate on bank deposits to 15%, to be formally executed from tomorrow, will contribute to the rise of the market p/e ratio on one hand and reduce companies’ financial cost on the other; this has the potential to eventually increase companies’ gross profit and therefore, lead to the capital market boom. Unfortunately, the volume and value of trades has fallen sharply in comparison with the period after the JCPOA struck. Referring to the recent fallings in the all-share index, such experts blame technical analysts whose financial decisions have led to the formation of a short term investment horizon among investors. Market activists assume that under the current situation, creating motivation to attract money to the capital market and pull it out from recession is a necessity, which was formed through setting tax exemption law, especially VAT. Such instruments are known to kick start demand on one hand and prevent the formation of a bubble on the other.
- After the announcement of selling 73% of Zob’s stake by Iran and the Steel Pensioners’ Fund for retired Iranian Steel Workers, while also planning to boost its production, an aware source has stated that companies from South Korea and Luxemburg have expressed interest in buying a part of Esfahan Steel Company’s (Zob) shares.
- Daroupaksh Pharmaceutical Ingredients Company has submitted its request to raise its capital by 200% mainly based of its shareholders’ paid-in capital and claims due. This plan is targeted to improve and upgrade the product line, launch new product lines as well as financing the required working capital.