‘SEO expanding collaborations with intl. entities’

July 5, 2022 - 14:24

TEHRAN - As announced by the advisor to the head of Iran’s Securities and Exchange Organization (SEO), the organization has signed 20 cooperation agreements and memorandums of understanding (MOUs) with foreign stock exchanges and supervisory entities, IRNA reported.

According to Bahador Bijani, several foreign delegations have entered the country's capital market in the past few months which is a positive sign that the shadow of international problems has been removed from the market.

“Previously, the international transactions of companies active in the stock exchange were facing some problems and now these issues seem to have been resolved to some extent,” Bijani said.

The official noted that the SEO has also become a permanent member of the International Organization of Securities Commissions (IOSCO) and is expanding its international collaborations through this organization.

Stating that IOSCO regulates and supervises more than 95 capital markets around the world in 105 executive areas, he said: “Iran can play a more important role in an organization that regulates and supervises more than 95 percent of the world's capital markets.”

Iranian stock market has been struggling for months to get back on track, although various internal and external factors have been hindering this market from reaching its true potential.

However, Market Analyst Hassan Kazemzadeh believes that the market has the potential to grow despite the distrust created in the market as a result of some bad decisions.

"Of course, there are ups and downs, but no matter how much distrust there is, the changes of major economic factors will affect the market, but this effect takes place gradually and over time,” Kazemzadeh said.

According to the analyst, uncertainty about monitoring policies, especially interference in valuing the shares of companies, imposition of various duties, imposing corporate expenses such as taxes and export duties, etc., has caused shareholders to be pessimistic about the market.

“Although there is a 30 to 40 percent growth potential in the market, even professionals are disappointed,” he regretted.

Regarding the situation of the capital market in the second half of the year, Kazemzadeh said: "According to the fundamental analysis, many stocks that are profitable, regardless of whether their profit margins or profitability are high or low, have the potential to reach their price ceiling of the Iranian calendar year 1399 (ended on March 20, 2021). If this happens, the market index will also pass the ceiling of that year.”


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