TEHRAN, Iran, April 23
Trend:
Iran 's stock exchange will continue to boom in current Iranian year (began March 20, 2020) as reliable investment tool, said former managing director of Saderat Bank.
Ahmad Hatami Yazd has discussed the investment in the country's stock exchange in an interview with Trend.
"People and the government are currently choosing the stock exchange for their investments," he said. "The government plans to offer its shares of public companies at the stock exchange, since the oil sale chain has been interrupted and the government can not obtain considerable taxes due to coronavirus. Therefore, the only way is to sell shares of factories, hotels and facilities to have revenues and it seems the stock exchange will improve by the end of the Iranian year."
"One can not say that the stock market boom is real. However, considering the fact that other ways for revenue have become limited and there is fluctuation risk in foreign currency market, ordinary people have stopped investing in gold market, so the only investment option is housing market and stock exchange," said Ahmad Hatami Yazd.
"As for the property and housing market, there are municipality charges and a long process of registration. Thus, purchase and sale of property is difficult, so it seems there will not be a boom for housing market this year, while the stock market continues to improve. Meanwhile, there is also a bubble in it, since large volume of liquidity has been poured in the stock market," he added.
He went on to say that the sale of 10-percent share by Iran's Social Security Organization (SHASTA) at the stock exchange was very useful and expressed hope that there would be more offerings.
"The government is in a situation where it needs to offer shares, since there is need in liquidity. It can pass the difficult sanction situation by using stock market," he said. "Offering share of Mostazafan Foundation and the Execution of Imam Khomeini's Order (EIKO) at stock exchange is a prudent step to create revenues'"
"Mostazafan Foundation and EIKO should help the government to solve its budget deficit problem, since there are problems with paying salaries," he said.
"At the moment, the ceiling of banks interest rate is from 10 to 15 percent. Meantime, people can even obtain 20 percent interest rate for short or long-term deposits, and in some cases, banks offer 23-percent interest rate," he added.
Currently, Ayandeh Bank, Parsian Bank, Mehr Finance and Credit Institute, and Noor Bank provide 20 percent interest rate for short term deposits; Iran Zamin Bank and Sarmayeh Bank provide 18-percent interest rate; Maskan Bank - 16-percent interest rate, and Kosar Credit Institution offers 19,99-percent interest rate.