In his latest interview, the chief of Securities and Exchange Organization discussed the recent changes occurred in the capital market. Believing that the capital market mirrors the overall economic health of the country, Dr. Fetanat stated that to support it, there must be a convergence between policies adopted by different organizations of the country, namely among ministries of economy, oil and gas, defense, mines and commerce, generated by correctly and realistically analyzing the current situation.
He remarked that the road towards better market transparency is under constant construction. He added that one way to success is the new attempts pertaining to direct publishing of data by issuers themselves. Another was launching “Tedan” platform, a website where investment consultants freely share their analyses on newly posted financials announced through CODAL, another positive step implemented by the SEO.
The organization has also defined new policies to reach more transparency while simultaneously promoting market efficiency of which policies of trading base volume reduction and volatility range rise can be bold-marked. Besides, introducing new indices was also another effective measure; however, he modestly confessed that SEO still has a long way to accomplish such a goal of enormous magnitude.
In his opinion, the main challenge with which market players are struggling is the current ambiguities in pricing gas-feeds, iron ore and the like and no clear policy in approaching these topics by the regulators. Unfortunately, this has been a common problem and asks for more coordination and collaboration on the part of organizations responsible. Regarding the entrance of foreign investors, he insisted on more preparation domestically and reinstated that the capital market has been a real pioneer in creating infrastructures in areas such as technology, education, communications, and marketing. In the end, he expressed strong hopes that after the implementation of the nuclear deal’s mandate in January, the capital market will finally witness its true boom.
TSE at a Glance
Summary of Trades
IFB at a Glance
Trading Halts & Delays
It seems that the stock exchange market would not prosper out of the newly-changed atmosphere, however still cloudy, unless the current recession gives way gradually to a sunnier kind we are hopefully waiting for. Today, the market overall index tumbled 6.71 points or 0.01% to stand at 64,511. The volume of trades is still low and it appears that the market is suffering from the liquidity crisis we wrote about earlier in our previous posts. The reason is that market players are expecting for more signs of improvement; 1Q reports lived up to expectations on dim results on companies’ financials; but, 2Q reports dashed hopes for gains on stocks as they repeated the same poor performance just like they did in the prior reports, due to global markets turmoil such as oil and base metals tumble in prices, impacted by the Chinese economic and stocks prices free fall, which added salt to our injured and jolted market.
Under such a climate, the government has a winding road ahead; it intends to reduce the inflation rate and simultaneously uproot the prevailing recession from industries and markets. To do so, the government has to take three steps: facilitating the liquidity flow to companies; removing nuclear sanctions as a catalyst speeding promotion pace, and applying changes in the rules and regulations it has passed in the past. After implementing the mandate of the nuclear deal along with the government’s attempts to solve the problems with which the major industries are grappling, the stock market is expected to witness more mobilization. As a result of such measures, experts believe that the real taste of growth can be gradually perceived.
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