Iran's Stock Exchange rebounds

Business Materials 31 August 2020 17:11 (UTC +04:00)
Iran's Stock Exchange rebounds

TEHRAN, Iran, Aug.31


Iran stock exchange trades have resumed to its previous status and trading reached $500 million in early hours of Monday, said a member of Iran Supreme Council of Stock Exchange, Saeed Eslami, Trend reports citing ILN.

"The market needs support that includes policymaking, a mechanism for the free market, and reducing limitation. The Stock Exchange would perform better if more liquidity is injected, " Eslami said.

"Shareholders and investors should know the market is volatile although the government should provide training for individuals that seek to invest in the stock market and make profits," he said.

"The stock market index dropped in the past two weeks that caused investors to pull out around $160 million per day from the market while during good days the trade volume increased to $714 million," he said.

"The figures dropped in last week but trade volume increased on Wednesday to $428 million, now the market has returned to its previous state and today trading was positive," he said.

"There were many individuals that pulled out their investment from the exchange trade funds these days, these individuals did not choose to invest on smaller shares and when shares of big companies dropped they pulled out of the market," he said.

The government has offered the second exchange-traded fund (ETF) on Wednesday as part of a series of three ETFs that would offer shares of some state-owned organizations and companies.

Shares of Tehran Oil Refinery Company, Tabriz Refinery, Isfahan Refinery, and Bandar Abbas Oil Refinery Company were included in the second ETF.

The first ETF, established by the Ministry of Finance and Economic Affairs, comprised of government shares in three banks, including Bank Mellat, Tejarat Bank, and Bank Saderat, as well as the shares of two insurance companies including Iranian Reinsurance Company and Alborz Company.