Iran’s chief economist calls on banks to assist stock market
By Sara Rajabova
Plagued by severe and harsh sanctions, Iran has experienced many difficulties over the years. Today it is its stock market which is suffering.
Tehran Stock Exchange has recently observed a decline over a number of issues including the oil slump, low liquidity, budget ambiguities and the country’s lingering nuclear negotiations with world powers.
Iran’s economy and finance minister has called on Iranian banks to render “immediate assistance” to the country’s troubled stock market.
The plunge in the main index of Tehran Stock Exchange for six consecutive days prompted Ali Tayebnia to hold an emergency meeting with the directors of Iranian banks and capital market authorities, Tasnim News Agency reported.
During the meeting, Tayebnia called on the bank directors to inject cash into the troubled stock exchange market.
The ongoing decline of indexes on the Tehran Stock Exchange caused shareholders to protest on May 11.
A group of stockholders of the Tehran Stock Exchange held a gathering in front of the TSE building to protest the falling share prices. They said the declining trend of prices has led to a drop in their liquidity.
Tayebnia's meeting with the bank directors came following a protest by a number of stock holders who blamed TSE managers’ policies for the recent losses.
The TSE Index, TEPIX closed at 63,069 on May 11, 183 units up from may 10 following sharp declines since last week.
The situation did not remain unnoticed by Iranian lawmakers, as MP Hamid Rasaei is expected to question Tayebnia over the decline of the stock exchange in recent days.
Rasaei said a bill would be submitted to Parliament, aimed towards an investigation of performance of the stock exchange market, Fars news agency reported.
The fall in TEPIX came after it soared in the wake of a tentative framework nuclear accord between Iran and the P5+1 group countries in Lausanne.
Currently, the world powers and the Islamic Republic are in talks to finalize a comprehensive nuclear deal that will end the decades old nuclear dispute by the end of June.
Sanctions against Iran may actually begin to be lifted in the coming months should Tehran and the world powers reach a deal to curb its nuclear program by June 30 deadline. The deal would trigger a surge of trade and investment into Iran.
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Sara Rajabova is AzerNews’ staff journalist, follow her on
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