Iran’s stock market sees positive shift over past month
Date
12/23/2024 3:04:05 AM
(MENAFN) Iran’s Stock market has experienced a positive shift over the past month, fueled by several factors, including lower interest rates, the removal of price controls, and supportive actions from the Ministry of Economy and the Securities and Exchange Organization (SEO), according to market expert Ali Pazaki. In an interview with IRIB, Pazaki emphasized the importance of the shift from the NIMA exchange rate to a negotiated exchange rate, noting that many listed companies, particularly those focused on exports, have benefited from this change, which has enhanced their profitability.
Another critical development mentioned by Pazaki was the government’s decision to remove mandatory price controls, which has had a particularly favorable impact on industries such as the automotive sector. Previously, automakers were subject to regulated pricing by the Competition Council, but allowing prices to be set through supply and demand on the commodity exchange has improved the financial performance of both automakers and parts manufacturers.
Pazaki also highlighted the reduction in systematic risks and the easing of regional tensions as key drivers behind the stock market's recent positive trend. These factors have helped create a more stable environment for investors, who can now make decisions based on clearer economic indicators, further bolstering market confidence.
Looking to the future, Pazaki expressed optimism about the stock market’s continued positive momentum. With ongoing government support and the inherent value of listed companies, he believes the market will continue to rise. Additionally, increased financing for listed firms, along with continued backing from the Ministry of Economy, could contribute to national development projects, helping to foster a more dynamic and robust economy.
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