Tehran Stock Exchange bearish despite positive political reports
Baku, Azerbaijan, Dec. 6
By Khalid Kazimov -- Trend:
The main index continues dropping in the Tehran Stock Exchange (TSE) despite the positive political reports regarding Iran's nuclear deal with the world powers.
Contrary to the expectations, the volume of shares traded in the Stock Exchange decreased and main index plunged by 156 points on December 6 compared to its preceding day, ISNA news agency reported.
Following the International Atomic Energy Agency's (IAEA) recent report on Iran's PMD (possible military dimensions to Tehran's nuclear program) file, stock prices were expected to rise.
Through a Dec. 2 report, the UN nuclear watchdog suggested although Iran took some limited steps towards developing a nuclear bomb, but the activities did not advance beyond feasibility and scientific studies.
According to ISNA concerns over the falling oil prices, continuation of the economic recession in the country and ambiguities about Tehran's economic situation have caused the shareholders to wait on the sidelines in Tehran Exchange stock and watch economic and political situation.
According to a July deal between Iran and the world powers, financial sanctions imposed by the West against Iran, its banking system and industry over Tehran's nuclear program, are expected to be lifted in return for scaling down the Islamic Republic's nuclear program.
Many foreign investors hoping for fat profits and Iran planning to renew its aging industry and ailing economic system have conducted meetings, in preparation for the lifting of international sanctions.
Iran expects that the landmark nuclear deal reached with the world powers, under which most of its nuclear sanctions will be removed in return for scaling down its nuclear program, to be implemented at the first quarter of coming year.
The IAEA has been given the role of verifying Iran's commitments under the lasting nuclear deal and its report was a condition of the July nuclear deal between Iran and the world powers.