بحرالعلوم

Managing director of Maskan investment Bank claimed any increase in the interest rate as a new challenge for other markets such as the Capital Market.

Tehran, Nov. 17 (SENA) – Mohammad Mahdi Bahrololoom, in an interview with SENA, cited: Banks should not create a new challenge by increasing the interest rate for the Capital Market and an obstacle for guiding liquidity to bourse.

He compared the Capital Market with the parallel market and declared: It is obvious that markets such as housing and automobile marked the prices based on the 400 thousand Rials plus Dollar and made an excessive expensiveness, therefore, they are not an interesting market for the customers.

This Capital Market Analyst added: On one hand, democrats’ take over and the probability of having more clam reactions and the probable return to Joint Comprehensive Plan of Action (JCPOA) or evolvements in economy, cause drop in currency exchange rate or a relative stability in prices in gold and currency markets; hence, there are no fortunate perspectives for investing in these two markets.

Bahrololoom claimed: It seems safer to invest and inject liquidity in long term bank deposits and the Capital Market. Comparing these two market, we need to review the fundamentals of the Capital Market, but generally, when we look at the shares’ prices, we can see that the P/E of some firms has reached 5 or 6; and considering the probable risks that are a part of this market, it should be noted that investing in the stock market is more logical and interesting than other markets and we could observe liquidity attraction beyond the expectations.

The managing director of Maskan bank mentioned that the bank interest rate needs review and if banks give 20 plus percent interest to the huge deposits, this subject can make complications for attracting liquidity in bourse.

Bahrololoom added: Our recommendation is that the economy ministry continues the tracking more seriously and through interactions with the Central Bank of Iran, hold the interest rate up to 18 percent to increase the attraction in the Capital Market and mid-term investments. Currently, the stock market has no difficulty in worthiness and its fundamentals, the main concern is to guide the liquidity to this market once again, and balancing the interest rate of banks can be a motive through it. If this occurs, controlling the currency exchange rate and the interest rate would be easier; it means that the policy maker should make the most of this market when investment in currency market faces huge risks.

He stated about the unnatural sale queues that it is better to return the previous limitations; because one of the biggest worries of the market activists, is the challenge of the juridical people in transacting which restrains a considerable part of their demand.

The managing director of Maskan bank also remarked that the current condition in the Capital Market is acceptable; because there are some pending initial offers and there are stronger infrastructure for entering liquidity

Comment

You are replying to: .
5 + 13 =

Latest of Capital Market