Market drop on the day of issuance of the new stock exchange decree / What is the reason for the uncertainty of Tehran Stock Exchange?
According to Tejarat News, the Tehran Stock Exchange ended its work this week in a situation that most experts believe that the uncertainty of the stock market will continue.
Tehran Stock Exchange ended its work today, August 19, 1401, with a drop of more than 3 thousand units in the third week of this month.
The drop of 3,472 points in the total index caused the figure of 1,448,000 points to be recorded on the capital market boards. The equal weight index continued its downward trend following the total index in recent weeks and stabilized in the range of 389,000 units.
What is the reason for the uncertainty of the stock market?
Most capital market experts believe that the stock market has been affected by the recent round of nuclear negotiations. Referring to the exchange rate fluctuations in the free market, some believe that the drop in the price of the dollar was the cause of today’s drop in the total index. But in general, the uncertainty of the stock market in recent weeks, especially in the past days, is considered to be influenced by the JCPOA situation and irregular exchange rate fluctuations.
New presidential decree
Today, news was published at the same time as the stock exchange trading that a new order was issued by Ebrahim Raisi to stabilize the capital market. The news, which happens to be contrary to the initial idea, can cause concern for the shareholders. According to most stock market experts and economists, such orders of politicians, despite their attractive appearance, have had adverse effects on various sectors of the economy.
In the recent case, the chairman has issued an order to establish stability and transparency in the market, which has once again worried the shareholders. Experience has also shown that whenever such an order is issued, it has a negative effect on the market and causes instability in the general stock market situation.
The story of unaccountable interest rate changes
Of course, some believe that the policy of the central bank and the government in determining the interbank interest rate is another factor for the uncertainty of the stock market. The witness of this claimant is the immediate growth of the interest rate from the beginning of the year until before August and the sudden and unexplained change in the direction of this trend from the beginning of this month. Many economists believe that the stock market’s protests against Khandozi’s promise to stabilize the interest rate changed the Central Bank’s policy in this regard.
Now, we have to wait and see if such a procedure in determining the country’s monetary policies can lead to the realization of Raisi’s stock market order to Khandozi or not?