Can Barjam negotiations change the course of the stock market?
According to Tejarat News, nuclear talks have begun in Doha, Qatar, and according to reports, the talks are expected to culminate in an agreement. On the other hand, a senior US official, without expressing optimism about this round of talks, said that the agreement with the Islamic Republic is not closer than when the talks were stopped three months ago.
In an interview with Tejarat News, Bahman Fallah, a capital market expert, said: “Due to lack of liquidity, Borjam negotiations cannot have an impact on the stock market.”
He continued: “The capital market does not react to agreement or disagreement, and in a way, stock market problems are not solved by agreement.” The main problem of the stock market is the lack of liquidity. The value of the trades indicates where the glass hall problem is.
The capital market expert explained: “If the negotiations are successful, the industries that will be affected by the agreement will remain negative.” This shows that the capital market is no longer attractive for investment. The economic stimulus element, or the stock market, as defined by the head of the stock exchange organization, needs shock and revival.
The stock market needs a deep shock
“If the capital market is not revived, it will not show a positive reaction to the negotiations and the increase in the price of the dollar,” Fallah said. That is, only the negative and erosive trend has prevailed in the stock market.
Referring to the increase in shareholders ‘losses, he said: “Over the past two years, shareholders’ losses have not been compensated, but the losses of some shareholders have increased.” In this erosive process, the capital market must be revived by injecting liquidity. Unfortunately, the stock market is in a coma and needs a big shock to revive.
“In the long run, systematic market risks are reduced through fruitful negotiations,” he said. But in a market where there is no liquidity, what do shareholders want to buy?
Finally, Fallah said: “The most important need of the stock market right now is liquidity, and the trend will change with the injection of liquidity.”
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