Baku, Azerbaijan, June 12
By Farhad Daneshvar - Trend:
An Iranian official with the Tehran Stock Exchange (TSE) has forecasted growth for the country's capital market in the second half of the current Iranian calendar year which started March 20.
Seyyed Mohammad Hasheminejad, director of Investment Culture Development Department at the TSE, has said that the volume of investment in the capital market will increase following an expected decision to cut banking interest rates in Iran, IRNA news agency reported.
Elaborating on the ongoing downward trend in the TSE, he explained that the recent negative performance of the capital market is stipulated by the current economic recession in the country.
Tehran Stock Exchange (TSE) main index experienced a huge fall by 1,026 points and stood at 74,850 on June 11.
Over the past two months since the start of the new Iranian year (started March 20), the TSE main index has shown a negative performance.
The downward trend in the TSE comes following an extremely positive reaction to the implementation of the Joint Comprehensive Plan of Action (JCPOA) Jan. 16, which resulted in the removal of the nuclear-related sanctions imposed on the Islamic Republic's key energy and financial sectors.
Following the implementation of the JCPOA, a large number of excited investors in the TSE aiming to reap great profits rushed to purchase shares, so the main index immediately jumped by 25 percent.
However, the market soon started to correct itself as the JCPOA has partially failed to fulfill economic expectations in the country. In the meantime there are shortcomings in the country's fiscal and monetary policies that need to be addressed.