TEHRAN – An Iranian capital market analyst believes that various internal and external factors have contributed to the current downward trend in the stock market and no single person or entity is at fault for the situation.

“The current situation in the capital market (the decline in the market index) cannot be attributed to a specific person, organization or institution; Rather, various factors have come together and created the basis for such a trend in the market,” Shahin Cheraghi told IRNA on Wednesday.

Emphasizing that internal and external factors such as rising bank interest rates, global price reductions, and JCPOA negotiations have had an impact on the recent market trend, he added: “It cannot be claimed that the recent drop in the stock market index was caused by the actions of the government.”

According to the expert, the uncertainty about the JCPOA negotiation process has led to investors' doubts about injecting their funds into different markets.

“We have had predicted the creation of such an atmosphere for the market some time ago,” he said.

Cheraghi underlined the decrease in liquidity inflow as another factor influencing the current fluctuation of the capital market and said: “The country's economy is an interconnected complex, on one hand, the government and the central bank are worried about the liquidity growth in the country's economy, and on the other hand, they have increased interest rates which has led investors to deposit their funds in banks which is creating more liquidity.”

“We have experienced such events and their impact on capital market transactions in the past; Other issues such as global prices have also affected the stock market trend so that during the last three months caused the market index to drop significantly,” he added.

Earlier this month, the secretary general of the Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA)’s Money and Capital Market Committee 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 September 17.

EF/MA