Economy, Business And Markets

Stocks Edge Down in Weekly Trade

Business & Markets Desk
Stocks Edge Down  in Weekly TradeStocks Edge Down  in Weekly Trade

When there’s not much to look forward to in the equity market, investors get spooked by the slightest hint of negative news and shuttle their money to other markets.

The Central Bank of Iran’s recent decision to issue certificates of deposit at 20% rates blocked the foreign exchange market’s rally and simultaneously sapped stocks’ uptrend on the back of a weaker currency and introduced a more attractive investment option compared to stocks.
The rising yields in the debt market also mean reduced attraction for stocks. The last two batches of Islamic Treasury Bills issued on Iran Fara Bourse had their yield to maturity reach about 20% to compete with the no-risk high-return certificates of deposit.
Government Spokesman Mohammad Baqer Nobakht announced on Wednesday that government bonds with 20.5% YTMs will be issued as of Saturday, as the CBI’s two-week deadline for issuing CDs will come to an end.


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