TEHRAN, Iran, May.9
Trend:
Iran's stock market is hardly affected by global developments, while the investment in capital market is growing, said a stock market expert.
Homayoun Darabi has discussed the investment growth in stock market and concerns over market reform in an interview with Trend.
"The share value of small companies has grown considerably and may undergo a price reform in the near future," he said.
Darabi noted that there is no specific concern in terms of major shares in the stock market or big companies. But small companies will face pressures due to liquidity limitation and we hope major shareholders improve the situation by selling their share, he said.
"Investors are investing cautiously in the market. They need to review the related information on the shares they purchase from companies, including price, history, growth and specialties. The buyers should invest in big companies with strong structure," he said.
Darabi said the government will hopefully offer shares of good companies in the field of oil, gas, petrochemical and mines.
"Trading shares of the Iranian Mines & Mining Industries Development & Renovation (IMIDRO), and the Industrial Development & Renovation Organization of Iran (IDRO) at the capital market can finance the government,” he said.
"While global stock markets have shrunk due to Coronavirus spread, Iran's stock market is growing since we are not connected to the global stock markets or international investment. So the global market developments do not affect our economy considerably," Darabi explained.
He pointed out that important issues that affect Iran's stock market are mostly domestic, including reducing bank interest rates, increasing US Dollar rate and increase of anticipated inflation. “These issues are not related to the global events and stock market approach is based on domestic developments.”