TEDPIX drops 5,337 points on Saturday

December 4, 2021 - 16:18

TEHRAN- TEDPIX, the main index of the Tehran Stock Exchange (TSE), lost 5,337 points to 1.334 million on Saturday (the first day of Iranian calendar week).

Over 4.311 billion securities worth 90.917 trillion rials (about $736 million) were traded at the TSE.

The first market’s index lost 5,105 points, and the second market’s index dropped 6,984 points.

Over the past 15 months, continuous fluctuations in the Iranian stock market have led shareholders, experts, and scholars to believe that the government should not interfere in the stock market, saying the government's pre-ordered and unrealistic pricing of some state-owned shares is the main reason for the capital market’s current downward trend.

In this regard, the head of Iran’s Securities and Exchange Organization (SEO), has said the government is following new strategies to avoid pre-ordered pricing in the stock market in the long term.

“The government's policy, in the long run, is to avoid pre-ordered pricing. This policy has been repeatedly stressed by the president and the government's economic team and has been placed on the government's agenda,” Majid Eshqi said on November 14.

According to the official, supply and demand should be the only determining factor for setting the price for a share.

“We need to move away from imperative policies so that companies can be profitable in the long-term,” he said.

Over the past 15 months, continuous fluctuations in the Iranian stock market have led shareholders, experts, and scholars to believe that the government should not interfere in the stock market, saying the government's pre-ordered and unrealistic pricing of some state-owned shares is the main reason for the capital market’s current downward trend.

The government has been claiming that the decisions made for this market are not aimed at interfering in stock exchange transactions or directing the market, but are efforts for reducing the bubble created in the market and to prevent further decline of the stock market index.

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

EF/MG

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