Are the government’s support packages for the stock market efficient? – Tejarat News

According to Tejarat News, yesterday the Minister of Economy announced a new support package for the capital market. Khandozi expressed his hope that this package will be announced within the next few days and said: We hope that this package will be a step towards increasing the profitability of stock market industries in the coming year.

The Minister of Economy said about the government’s policies to support the entry of 34% liquidity into the capital market: a few weeks ago, a new package was finalized in the coordination headquarters of the economic headquarters of the government and will be announced in the coming days, which will help the profitability of listed companies continue, and this issue It leads to attracting liquidity in this market.

Khandozi said: Due to the fuel problems in the past months, the government implemented programs to reduce the pressure on the listed companies and tried to help in the past months by connecting economic companies to set up a dedicated power plant and also to use other fuels in order to avoid this. Do not face problems through the profitability of companies.

Copy of previous support packages

Meanwhile, Khandoozi said about the new package that in the first weeks of November another package of 10 clauses was announced to support the capital market.

The November package had 10 clauses, the first clause of which was portfolio insurance for stock market shareholders, according to which 580,000 people insured their portfolios. These people should not touch the composition of their portfolio until November 4 next year; This means that the shareholders must not sell their insured shares until the specified period.

Of course, the sources of this insurance are supposed to be provided from next year’s budget, and despite the severe budget deficit and inflation, according to experts, this financing is a bit difficult.

The second paragraph of this resolution was to issue warrants on stocks in fixed income funds up to 400,000 billion Rials with the guarantee of the principal value of the stock portfolio at the beginning of the period.

But most of the stock market activists and experts declared that this issue has not been realized either. Accordingly, it is necessary for the stock exchange organization to announce the statistics of this resolution.

With the management and cooperation of the Ministry of Economy and the Central Bank, the interest rate was supposed to be managed, but we still see extreme fluctuations in the interest rate, and somehow this interest rate has not been managed yet.

The OTC trading time was also changed during this period, but this change could not have a positive effect on the transactions and only the shareholders saw the change in their trading time.

Another resolution is the injection of new resources by the sovereign funds to buy shares in the market, which should also be announced by the stock exchange organization because the sovereign funds have not made information available, so the status of this resolution is still unclear.

Another clause of this 10-clause package was that 50 thousand billion Rials should be paid to the stabilization fund from this year’s budget. But the whole amount has not been paid yet!

Also, the direct deposit of the Stock Exchange Organization with the Stabilization Fund was supposed to increase, and the 100% statistics of this issue have not been published and we have to wait for the publication of the relevant information.

Investigations show that one month after the announcement of this 10-point package, none of the items had been implemented, and now, after about 4 months, only a part of this resolution has been implemented.

The non-implementation of the resolution and the support packages for the capital market at the appointed time will cause the shareholders’ confidence in the stock market to decrease, and the decrease in confidence will have no result other than the outflow of liquidity.

Inconclusive government packages

As it appears from the statements of the economic spokesman of the government, we should soon see the unveiling of the new support package; But the question is, how useful can this package be? The problem is that since 1999, many support packages have been announced in the capital market, but none of them have been able to have an impact on transactions.

For example, the mentioned 10-point package was announced on the 7th of Aban, but after that we did not see a surprising trend in the market indices, and only the total index turned slightly positive, which was also due to the positive news of the capital market.

Now, despite the ineffectiveness of the support packages for the stock exchange, these days we see that the Minister of Economy is looking to implement a new support package. The Minister of Economy should be asked why, considering the ineffectiveness of the previous packages to support the market, the new package is still announced, while the most constructive support for the capital market is the non-interference of the government in its affairs.

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