TEHRAN – Secretary general of Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA)’s Money and Capital Market Committee has said the future of the stock market is expected to be more positive compared to other markets.

“In the future, we will see the improvement of the trading situation and the reduction of the fluctuations in this market,” Mohsen Yeganeh told IRNA on Saturday.

“Considering the strong potentials in the capital market and their reliance on the economic potentials of the country, the ingredients for the growth of the stock market are available, but until the risks created in the country's economy are not resolved, we will still witness some fluctuations in the capital market,” he added.

According to Yeganeh, if the risks incurred in the stock market are removed, the market will improve, and the fluctuations in this market will recede.

Pointing to the recent volatility in the stock market, the official said: “After the abnormal rise of the stock market index in [the Iranian calendar year] 1399 (March 2020- March 2021) and the growth of stock prices during the previous government administration, we witnessed severe falls in the stock market index, which continued for a long time and caused shareholders heavy losses.”

He noted that the mentioned declines resulted in people losing trust in the stock market adding that "trust" is the main pillar for investment in the financial markets and lack of trust and the risks created in the market are hampering the market’s growth.

The official pointed to the outcome of the Joint Comprehensive Plan of Action (JCPOA) talks and its impact on the capital market and continued: “The JCPOA agreement is one of the factors that have been affecting the market and the current fluctuations in the market may continue until the results of the JCPOA talks are clarified.”

Earlier this month, stock market analyst Mostafa Safari also said that the outlook of the Iranian stock market is positive for the next two years and the market is expected to get back on track and continue its upward trend within the next two years.

Safari noted that global economic stagnation and inflation have negatively affected stock markets all around the world including the Iranian capital market.

“It seems that for the next two years, we will see an upward trend in the capital market; Because some statistics show that the market follows a two-year pattern; it has been facing two years of recession from August 2019 to August 2022, now it is time for the market to experience two years of prosperity,” he explained.

The expert said the capital market needs political and economic stability for growth, which can be achieved by restoring JCPOA.

“We should not expect the economic impact of the nuclear deal in the short term, and it may take more than a year for the positive effects to be manifested in the market,” he stressed.

EF/MA