Iran Central Bank reduces interest rates!
– As the maturity dates of 20% bank deposits issued last year are closing in, now Iran Central Bank prepared a plot to reduce the risk of these massive funds flowing into parallel investment markets. The CBI is to extend the period of these certificated for another year yet with an 18% interest rate and a premature redemption rate of 10%. The important part is that CBI allows banks not to issue any new certificated but to extend the outstanding figure with a lower rate. This could be a piece of good news for both Iranian banks and Iran debt market which suffers from high-interest payments and +20% yields respectively.
– In an unprecedented event, the CIS head of Iran Khodro, one of the two largest auto producers in Iran, announced that after requiring the necessary licenses, this company is to export to Ukraine its DENA and DENA+ models in SBU mode from a foreign production site in Azarbayejan. Seling IKCO cars in Belarus in from of SKD would be the next project of this company as Belarus in the most economical destination for made in Iran cars digging their path to Russia.
– As the YTD performance of Tehran Stock Exchange main index (TEDPIX) reached 62%, more than half of registered Iranian mutual funds have recorded an index-beating performance. Moreover, during the range market of last week, Hasty Bakhsh Agah ETF, managed by Agah Group, stamped a weekly +2% performance which placed the fund first in the latest rankings. The below table shows the best performing funds based on their YTD yield:
In the Market
Equities once again battled with low liquidity in the market today and lack of fresh funds made yet another boring day for both Tehran Stock Exchange and Iran Fara Bourse. TEDPIX (-0.31%) fell for +490 points to close at the edge of its technical resistant level of the 157-8K band that if lost it could drag the index into darker zones like the 140K level. IFEX (+0.06%) nearly stayed untouched and closed at 1,934.72.
Today’s trades were an absolute example of indecisive decisions of investors who now have more doubts than ever with regards to the future of the national economy. Overnight rulings and fear of a closer than expected economic recession made market participants engage with the market with the slightest exposure they could even take.
In this situation, people turned into safer assets like gold for investments and the bullish trend of global ounce made them take more risk towards the gold coin market. Gold-backed ETFs were in the spotlight today with Lotus Parsian Fund (LOTF, +0.93%) being their leader. Each Bahar Azadi coin traded for IRR 44,260,000 showed a 1.02% rise contrary to the previous trading day.
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