Iranian Shareholders face Rocky Road ahead

It is worth saying that the CMDF was primarily set up to be applied as a market making vehicle to stabilize capital market volatility and increase liquidity in the stock market. The underlying objective was to maintain and develop fair competition conditions in the face of financial and economic crises in the stock market: a target that was not materialized in the eyes of financial pundits, discouraging extensive engagement in the TSE.

Indeed, arbitrary mechanisms for disclosing TSE-listed firms’ financial data by the SEO have raised concerns among market players. This has been a risk gradually contributing to the flight of capital from the exchange market. Electricity Meter Manufacturing Company, locally known as SKI, is one notorious example in this regard. The small company was confirmed to reopen its ticker symbol in return for its board of directors’ pledge to absorb any possible losses, without properly examining its forecast financial earnings.

This, nevertheless, ended up in a trading halt for SKI and consequent huge losses for mostly retail investors who are not yet aware what might come of their investment after almost a year.

Recent volatility in metal and mining stocks prices and to a lesser degree in oil contributed to the TSE All-Share Index to eventually gather momentum to move up. But the value and volume of trades are not satisfactory yet. For stock prices to spike in the long term, reduction of interest rates, appreciation of the dollar exchange rate and the current advancement of global commodity prices are generally seen as basic prerequisites for a resilient, sustainable growth of the TSE.

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