Tehran, Iran, Oct.19
Trend:
Psychological factors, such as news, rumors and political events, such as sanctions, can affect the market and the value of stocks, Javad Eshghi Nejad the managing director of the Investment Company of the Pension Fund of Iran (ICPF) told Trend.
He mentioned that the fluctuations in the stock market are quite normal.
He went on to add that the capital market is based on information and the efficiency of corporations.
“For example, if a company are profitable in the six-month reports, investors will also move towards that company. But sometimes the speed of the developments and the growth of the market is so high that there is a need for price reforms. The fluctuations sometimes are derived from such factors,” Eshghi Nejad said.
"Psychological factors that come from news, rumors and political events outside the country, such as the imposition of sanctions, can affect the market and the value of stocks," he said.
He called the current status of the stock exchange, stable and said that today's market is proportional to the US dollar's value of the past year and is proportional to return on equity.
“The boom in the production is one of the components of stock value. In addition to production, price and cost are also other components. So, despite the lack of change in the production of some industries, the stock will show its value in sales,” he said.