Iranian Central Bank former advisor: Situation with index growth of Iranian stock market reminds 'bubble'
Azerbaijan, Baku, July 15 / Trend D. Khatinoglu, T. Jafarov /
Despite a sharp rise in the cost of bonds is observed on the Iranian stock market and stock index reached 15,000, it indicates to development, former adviser to the Iranian Central Bank Bijan Bidabad said.
He believes that this development will be short, given the stagnation in share prices of certain companies.
BursNews reported July 14 that on Monday stock prices of bonds reached a record limit. According to the report, the index has exceeded 15,000.
The situation with increased prices for Iranian exchange bonds recalls "bubble", which in future may break, Bidabad told Trend over phone from Tehran.
Previously, when Iranian Minister of Economy Shamsaddin Husseini told Trend said that despite the international sanctions, Iran's economy is developing dynamically and rapidly. He cited the example of the progress on the stock market, saying that the oil, industrial and other sectors of the economy are developing dynamically.
However Bidabad stressed heavy and stagnant economic situation in the country. He added that the emergence of a "bubble" on the stock exchange contributes to "attack" of exchange customers.
Now such an attack on the Iranian stock markets is connected with the fact that conditions in other economic spheres of the country are not so favorable. So, the investments are directed on the stock markets. The companies' growing interest towards bonds on the stock market has caused inflate of prices, Bidabad said.
According to the newspaper Jahane Sanat (jahanesanat.ir) dated July 14, the price of one share of some companies, including the Iranian telecommunications company, remained at 20 cents. The Iranian Telecommunications Company is the largest company. Its shares to the amount of 50+1 percent were transferred for $7.5 billion in September 2009 to the companies controlled by the Iranian Revolution Guard Corps (Sepah). The newspaper Jahane Sanat, referring to a member of the Economic Commission of the Iranian Parliament Gulamrza Misbahi, reports that last year only 10 percent of state-owned companies were privatized within the project for privatization. About 90 percent of companies were transferred to bodies controlled by the state, including the Sepah.
Regarding the growth in share prices of some companies Bidabad said that this issue does not apply to all companies.
"The stagnation in the share prices of the telecommunication company associated with some problems in the company. It happens because of some gossip on ownership of shares and partners of this company," Bidabad said.