Baku, Azerbaijan, June 19
By Fatih Karimov – Trend:
Tehran Stock Exchange (TSE) main index experienced a sharp fall by 878 points and stood at 73, 027 on June 19.
According to the TSE website, 635 million shares worth about $43.3 million were dealt in 52,400 transactions by the end of the day at the stock exchange.
The total value of stock market stood at 3,098 trillion rials (according to the official rate on June 19 one dollar makes 30,528 rials).
Over the past ten weeks since the start of the new Iranian year (started March 20), the TSE main index has performed negatively.
The downward trend in the TSE comes following an extremely positive reaction to the implementation of the Joint Comprehensive Plan of Action (JCPOA) Jan. 16, which resulted in the removal of the nuclear-related sanctions imposed on the Islamic Republic’s key energy and financial sectors.
Following the implementation of the JCPOA, a large number of excited investors in the TSE aiming to reap great profits rushed to purchase shares, so the main index immediately jumped by 25 percent.
However, the market soon started to correct itself as the JCPOA has partially failed to fulfill economic expectations in the country. In the meantime there are shortcomings in the country’s fiscal and monetary policies that need to be addressed.
Experts at the TSE have forecasted growth for the country’s capital market in the second half of the current Iranian calendar year which started March 20.