TEHRAN – Ehsan Asgari, a stock market analyst, believes that the government’s measures for reducing the risks of trade in the capital market can help improve the market’s trend in the long term.

“Now, in the stock market, we are witnessing a reduction in the risks threatening stock market transactions, which can have an impact on the improvement of market trend,” Asgari told IRNA on Tuesday.

He pointed to the timely action of the government and the Securities and Exchange Organization (SEO) in amending the market’s laws and regulations and said: “[considering these actions] the stock market can provide shareholders with higher returns than other markets.”

The expert further pointed to some of the effective factors in reducing the volatility in the stock market and noted: “In the past few days, the prices of commodities in the global markets did not have a significant downward trend, and the currency market is also stable, and due to such conditions, export-oriented companies in the stock market have not been exposed to a high risk, which has been influential in changing the market trend.”

Referring to the current major problem in the stock market, the expert stated: “Now, the amount of resources entering the market, which is not significant, is the only problem that the market is struggling with; this has caused the market not to growth despite the high value of the shares.”

Regarding the reason for the decrease in liquidity inflow in the market, he said: “The small amount of liquidity entering the stock market is due to various factors, the most important of which is the manipulation in the market or the sudden change of rules and regulations affecting the companies accepted in the capital market. The issue has reduced the confidence of investors and consequently decreased liquidity in the market.”

EF/MA