TEHRAN – A report published by Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) on Monday stated that the capital market is still facing mistrust and uncertainty and with the continuation of the downward trend in the market’s index, shareholders are getting more inclined towards selling their shares.

After falling about 40 percent from its peak in July 2020, TEDPIX, the main index of the Tehran Stock Exchange (TSE), is still facing a continuous decline and now the market is in a more fragile situation than before as the index has fallen below 1.3 million points, the ICCIMA report said.

According to the mentioned report, the capital market is currently facing a sharp decrease in the value of transactions, the obvious reluctance of buyers, and the anxiety and worry of the shareholders.

Back in February, the government's economic coordination headquarters unveiled a support package for the capital market, which included measures such as reducing the price of petrochemical feed, reducing taxes on manufacturing companies, defining new regulations for the mining sector, increasing the capital of the Stock Market Stabilization Fund, controlling the release of government bonds, and determining the exchange rate of the banks; but this package, despite the temporary positive effects, was not able to change the general trend of the market and prevent the continuous fall of the stock prices.

It seems that in addition to the above-mentioned measures, the market and shareholders have had bigger concerns, especially about the future of the economy and economic activities in the country; the fact that these concerns were not seen in the support package is said to be the main reason for its inefficiency.

The uncertainty about the future has made the capital owners and stock market participants very cautious, the signs of which are evident in the value of market transactions.

EF/MA