Iran Economy NewsIran’s Stock Market Devours the Wealth of Lower Classes

Iran’s Stock Market Devours the Wealth of Lower Classes

-

Iran’s stock market

By Pooya Stone

Iran’s stock market while being on the top of Iran’s news is the new crisis that the people are facing because the government playing with the stock index in the hope to satisfy the people to invest in the stock market and to compensate it an economic loss of the recent year.

According to the Aftab Yazd daily on 26 August, the money of people who have invested in the stock market is ‘evaporating’, and “the stock fell so deep that it even said goodbye to the index of 1.7 million, reaching 1.662, a subject that has instilled fear and panic in the hearts of shareholders – mostly newcomers – and many are trying to leave the market.”

State-run daily Kayhan wrote: “After the emotional growth of the stock market in the first five months of this year, in the past two weeks, the stock market index has decreased by 20 percent, more than 400,000 units.

The stock market also experienced a relatively significant decline today. All the promises and actions of the government to return the market to a normal situation have not borne fruit, about 1.5 trillion tomans have been pulverized and lost. Now the situation that has arisen needs to be investigated and necessary action.”

State-run daily Siasat Rooz on 26 August wrote: “It has been two weeks since the stock market turned completely red and shareholders are seeing their stock prices fall more and more every day. Shareholders who made a small profit with little hope of making a profit, are still losing money and losing more and more hope with each passing day.”

Hamdeli daily on 25 August wrote: “The people who used to move their money from the coin and currency markets to the capital stock market are now withdrawing their money from the stock market.

“According to documented statistics, during the 100 days of this year, an average of 820,000 people has traded shares on the stock exchange and the OTC. (This statistic) shows that the number of players in this market has exceeded 12 million. If each of these people had invested an average of 10 million Tomans in the stock market, now about 45 trillion Tomans of liquidity has flowed into the stock market, which means that the lives of about 48 million people are tied to stock market games.”

Some critics have also accused the government of manipulating the stock market index to generate more revenue than selling shares of state-owned companies at high rates, citing the government’s plan to increase sales of its assets, most of which are traded on the stock exchange.

Over the past two weeks, several governments and quasi-government giant companies have had the greatest impact on the decline in the overall stock index: Social Security Investment Company, Persian Gulf Petrochemical Industries, Mobarakeh Steel, National Iranian Copper Industries, Isfahan Oil Refinery, Tehran Oil Refinery, Jomhuri Islami Shipping, Telecommunication, Tamin Oil and Gas and Petrochemical Investment Company, Ghadir Investment Company, and Omid Investment Management Group.

Hassan Izadi, a capital market expert, says about the recent decline in stock market indices: “There are some inconsistencies in this market, and this has caused a lot of problems. From the Minister of Economy to the spokesperson of the government and the MPs, they are currently commenting on the scope of fluctuations and other issues of the stock market.”

The downward trend in the overall stock market index continued even after the supply of “Daraa II” was finalized, and while some do not see brokerage sales by equities as ineffective, some experts believe the market is improving.

Hossein Raghfar said: “If the stock market crash continues, these falls will reduce the people’s trust in the government.”

Raghfar continued: “The stock market is the mirror of all production in the country, and when we are in a deep recession, the logic that stock prices are rising has no other explanation than political pressures and making (fake) expectations for the society and the people.”

 

What is the Daraa II fund?

After the implementation of the plan to sell the “Daraa I” and the impressive acceptance of this fund by the people, the government intends to present its shares in the form of the ‘first refining fund’ in the capital market for the second time. “Dara II” Fund is in fact the second government ETF investment fund that was created to provide conditions for people to access the stock market.

While “Dara I” Fund included shares of banks and insurance companies, “Dara II” Fund consists of shares of refining and petrochemical companies (symbols of Shatran, Shepna, Shebandar, and Shabriz), which includes 500 shares in total shares of this fund and the “Dara I” which is worth 5 million tomans in a total of these two funds.

 

Read More:

Iran: Capital Escape and “Flying Dollars”

Latest news

 Statistics show that New Year accidents’ deaths in Iran reached 585

Ahmad Shirani, the head of the Information and Traffic Control Center of the Iranian regime’s police, announced that the...

Land Subsidence in Critical Conditions in Isfahan

Mehdi Toghyani, a member of the Iranian regime’s Majlis (parliament), pointed to the occurrence of land subsidence in various...

Iran’s Actual Inflation Rate Higher Than Official Stats

The state-run Donya-e-eqtesad newspaper, in a report analyzing the "general sentiment" regarding inflation in 2023, has stated that households...

Iranian Workers’ Monthly $136 Wages Can’t Cover $500 Expenses

The lives of a significant portion of the Iranian population are marked by uncertainty, largely because the Iranian economy...

Iranian Nurses Earn Twice Their Wages in Ride-Hailing Services

Reza Aryanpour, a member of the regime’s Majlis (parliament) Health and Treatment Commission, highlighted the growing trend of nurses...

Iran: Unprecedented Record of 152 Million Liters of Gasoline Consumption Per Day

On March 19, Iran set a new historical record in gasoline consumption with 152 million liters consumed in one...

Must read

Iran acts to expand sensitive nuclear capacity: diplomats

Reuters: A U.N. nuclear agency report due this week...

India welcomes Russian interest in gas pipe to Iran

Reuters: Oil minister Murli Deora said on Friday that...

You might also likeRELATED
Recommended to you