TEHRAN, Iran, April 30
Trend:
Iran can improve the difficult economic situation in the country by privatization and sale of public shares, said Chairman of Investment and Capital Committee of Iran's Chamber of Commerce.
Abbas Argon has discussed the liberalization of Justice Shares that are to be offered at the stock exchange in an interview with Trend.
"It is necessary to liberalize the Justice Shares so that those individuals who have economic difficulties can profit from their sale," he said. "The government should prepare for trading Justice Shares."
"There are many people who have lost their jobs amid coronavirus spread and need help. It's possible that at a first stage, not all shares will be offered at once, but this can be done step by step in coming months. "Selling the shares is a solution to provide finances for living expenses of various classes in the society and to balance the market" Argon said.
"There are bubbles in shares of small companies, but it's not possible to predict stock market future until the liquidity is reduced, while there is expectation that inflation will increase," the chairman added.
"At the moment, other markets including gold, gold coin, foreign currency and housing markets, are limited due to coronavirus spread, but the stock market is facing large volume of liquidity," he said. "The promotion campaign was effective in attracting people to the stock exchange; however, it is a special market and people should not be too agitated, since the market has high risk and fluctuation."
In his words, people should consult with brokers in stock market, or invest in the funds that have consistent revenues in the stock market.
"Banks and big companies can assign their shares at the stock market during this situation that will supply part of market demands and create resources, which can later be invested in new projects and would guide their properties from secondary market to primary market," he added. "It's the best time for banks to offer their properties at stock exchange and increase their floating stock and prepare for production leap. Furthermore, attracting liquidity will create jobs."
"People trust the capital market and it’s a good opportunity for public companies to sell properties. Moreover, the government shares can be offered at the market and create new companies to open job opportunities and increase capital," he said.