نادی

Tehran, March. 15 (SENA) - We are witnessing the steady growth in stock market, while the economy of our country is going through complicated conditions. On the one hand, the cruel sanctions imposed by the United States have hindered interaction with the world economy. On the other hand, policies adopted to contain the spread of Coronavirus have hampered the economic prosperity of businesses in the leading days to Iranian New Year.

 “The economy of China, some European countries, and even the United States has been affected negatively by the spread of Covid-19, and there are worries that the world economy would face a recession due to this issue and some other factors,” the managing director at Novin Investment Bank told SENA new agency.

Nadi Qomi stated that in the case of a global recession, it is predicted that the price of raw materias and commodities would decrease in the global market which could put an extra pressure on countries economy.

Despite the political and economic risks ahead, Iran’s capital market has experienced a 193 percent growth from the beginning of the current year, the financial expert in capital market added.

The managing director at Novin Investment Bank explained that even though the soaring inflation, the rising of NIMA exchange rate and the open market rate could indicate the profitability of companies and the replacement value of factories, according to the experts the economic prospect is not so promising that it can be in accordance with the rise of indices.

 , Nadi Qomi added. It seems that during the last few weeks the authorities of the capital market have had the same concerns. The increase in base volume, imposing trading restrictions for those who have acquired a trading code for the first time (regardless of the possibility of this restrictions in terms of having access to technical tools) and even price limit and the rumors about an increase in taxes are some of the means of controlling the speed of entry of new investors to the stock market, long lines of acquiring trading code, and the continued growth of the stock market.

He continued that we should increase and maintain liquidity in the capital market and also control the emotional buying and selling. To quench the thirst of the public for buying stocks, we have to mandate the hedge funds to sell the stock, facilitate the entrance of companies into capital market, which could result in the increase of initial public offering, the governmental and semi-private companies and public institutions offering.

 The managing director at Novin Investment Bank stated that the lack of micro liquidity offering and the disillusionment of new investors could lead them to markets other than stock market which is detrimental to economy. Therefore, there is an opportunity to get the most of presence of individuals in capital market in order to develop this market and increase its influence.

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