Iran Stock Market Surges to Record High
IRAN NEWS ECONOMIC DESK
TEHRAN – Iran’s main stock index broke through the key 2 million point mark for the first time ever on Sunday, state media reported, amid warnings that the market is overheating.
The Tehran Stock Exchange’s benchmark TEDPIX index gained 46,844 points in early trading, the official IRNA news agency said, up 2.4%.
The index closed at 1,961,649 on Saturday after surging by over 57,325 points, or 3.01%, on the day, according to the Tehran Stock Exchange (TSE) website.
Analysts and some lawmakers, however, have warned that the move might raise the risk of a stock market bubble as the rising market is at odds with Iran’s deteriorating economic fundamentals, which are also feeling the impact of the coronavirus outbreak.
But authorities have denied that there is a bubble in the country’s stock market.
Meanwhile a member of Supreme Council of the Stock Exchange told ILNA news agency that the capital market gets momentum from the dollar and forex market, adding that unfortunately policy-making in the national economy is moving towards chaos in the forex market, adding although people expected stock market correction, the condition of forex market has led to these records in the stock market.
Saeed Eslami pointed to the factors behind the current rise in the capital market which in the past days some signs of correcting prices had been seen. He added that the capital market is highly dependent on the economic decisions and since the dollar rate in the country has grown in the pat days, it has led to the rise in the prices in the capital market.
He noted that signals in the other market make people think of value of their money, and the capital market is definitely not an exception and people, in order to keep the value of their properties, prefer to invest in the capital market which is cashable one.
Eslami criticized the government’s policy-making which has forced people and investors to expect more inflation and devaluation of their properties.
He said the condition of capital market is not concerning for now.