Chief footprint in the stock market crash / Salehabadi dangerous signal to shareholders

According to Tejarat News, today, the total stock index fell by about 38,000 units, equivalent to more than 2.5 percent. What was the cause of this shock?

The dollar fell and the head of the stock exchange organization said goodbye. According to some, these two factors may have been the reason for the 2.5% drop in the stock market index today. But from the point of view of others, the main reason is another matter. What exactly happened? Is the footprint of the government and the central bank visible in the stock market shock this time as well?

The budget deficit has plagued the government since the first day of the new government, and the head of state has spoken in various speeches about the great challenge of the budget deficit. According to the Parliamentary Research Center, this budget deficit may reach 300,000 billion tomans this year. Some members of parliament have also predicted this figure to be 500,000 billion tomans.

On October 2, the president said in a meeting of the administrative council of Ilam province: “Today we are facing a severe budget deficit and many of the country’s problems are due to this budget deficit, and we must correct and organize this process.”

Today, however, the stock market shock does not seem to be unrelated to the government’s budget deficit.

Abdullah Meshkani, a stock market expert, wrote on his personal Instagram page after the stock market index fell today: »

Mehdi Samavati, another stock market expert, wrote on his personal page on Instagram: “Can the head of the stock exchange organization stop 30,000 billion tomans of government bond sales?”

This behavior by the government is while on June 4, this year, Ebrahim Raisi had said during the election campaign: the stock market is not a place for the government budget deficit.

“The problem with the stock market was that informing the people was not done with a serious management, and when the people came to the stock exchange with the government’s insistence, things were not done as they should have been,” he said. The stock market monitoring mechanism did not work properly and the Development and Settlement Fund did not prevent fluctuations. Stock market rights whose presence is like that of a rich kid and should be controlled. “The stock market is not abandoned and it is controlled, and the people trusted the control of the government.”

While it seems that the most important culprit today is the fall in the stock market index, the government, which Dehnavi Dehvani attributes the recent events to the central bank, not the government.

Mohammad Ali Dehghan Dehnavi, the resigned head of the Stock Exchange and Securities Organization, said that the volume of securities sold in the debt market is significant on a daily basis: “We must pay serious attention to the source of the sale of these securities.” Most of the bond sales are due to open market operations between the central bank and banks, whose transaction statistics are recorded in the debt market and do not in any way mean the sale of bonds by the government. In fact, during the first three weeks of October, the government did not sell any securities in the market and has no sales plan for the next week.

Dehghan Dehnavi has emphasized: what is reflected in the daily statistics of bond sales is due to the central bank’s open market operations and has nothing to do with the sale of bonds by the government. At the same time, the government is committed to maintaining interest rates, and there are no plans to raise interest rates, and concerns in this regard are completely unfounded.

Ebrahim Ra’isi or Ali Salehabadi, who are to blame for what is happening in the stock market today, ultimately did not pay for it, and this time it was the shareholders who were affected by the behavior of the government or the central bank.

However, today the decrease in the price of the dollar and the news of the farewell of the head of the stock exchange organization were also important news, but they were probably not the main reason for the fall of the index. Will the government change its behavior? Will the government warn the central bank? In the eyes of some, even if the central bank is to blame for what is happening today, it is the head of government who must answer why the central bank is doing such a thing to the stock market.