Stability in forex market to bring growth to stock market: expert

July 10, 2021 - 14:5

TEHRAN – Iranian stock market is expected to follow an upward trend as the country’s foreign currency exchange market has become more stabilized over the past few months, according to stock market analyst Azim Sabet.

“As one of the important factors in the market, [foreign] exchange rates have reached a stage of stability; therefore, one can expect a reasonable upward trend in the market,” Sabet told IRNA on Saturday.

He pointed to the effective measures taken for improving the current trend of stock exchange transactions and added: “One of the significant issues regarding the stock market’s current trading environment is the management of fluctuations in the market.”

The expert stressed that people should not expect the stock market to always follow an upward trend, saying: "Sometimes companies report on their performance and activities in a certain period of time and shareholders must use that information to make decisions based on the value of the companies."

Exchange transactions can take a reasonable course if the macroeconomics of the country is managed and no sudden changes are made, he said.

Unprecedented fluctuations in the Iranian stock market over the past few months have led shareholders, experts, and scholars to call for the government to increase its support for the market.

Following the supportive measures taken by the government, the market has been gradually getting back on track and experts believe that the market is regaining people’s trust.

Market Expert Reza Alavi believes that the inflow of liquidity into the market and the increase in the value of transactions indicate that people are once again trusting the capital market.

“At present, other markets such as gold, foreign currency, and cars are not attractive enough for investors, and the stock market is still a good place for people's investments,” Alavi told IRIB.

“After the election debates, people have come to the conclusion that the stock market is one of the priorities of the new government, and for this reason, they have re-trusted this market, and as a result, the inflow of new capital into the market has increased,” he said.

He further mentioned the rise in the global oil prices and the stability of the foreign currency exchange market as factors that resulted in the stability of the stock market.

EF/MA

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