'Bubble' in Iran's exchange and economic development

'Bubble' in Iran's exchange and economic development

Trend Persian Desk Head Dalga Khatinoglu

The International Monetary Fund (IMF) predicted the economic growth of Iran at zero for 2011.

The IMF estimated Iran's economic growth at 1 percent in 2008, 0.1 percent in 2009, and 1 percent in 2010.

In its 2010 report, the IMF reported that Iran's GDP growth was at 1.1 percent in 2009 and forecasted the figure to reach 1.6 percent.

Iran refused to publicize the official economic development data from 2009. Claiming about a continues rapid economic development in the country, the Iranian president stressed that 1.6 million jobs were opened over the last year and 2.5 million in this year. The Iranian officials link the high index and increase in the price of shares in the exchange observed over the past year, particularly the fact that the index reached its record in the past ten days, with a normal and constant situation in the country.

Roughly 375,000 million shares were sold at the Tehran Exchange on Monday. Based on the official data, the share price hit $135 million, which lead to increase of the exchange index by 480 points or 2 percent, amounting 25,023 points. Today, the figure is 27,000 points.

Ex-adviser to the central Bank of Iran Bijen Bidabad believes such a development in the exchange is linked with the country's low economic development, as well as with the fact that population prefers to purchase shares in the exchange rather than invest in the industry and service spheres.

The development in the Iranian exchange is nothing more than a 'bubble' that can burst at any time, he told Trend.

Serious crisis has been observed on the Iranian markets, including the real estate market and construction field over the past one year. According to the Iranian Central Bank's statistics publicized in 2010, licenses issued by the city executive powers decreased by 23 percent in 2009 compared to 2008. Crisis in the construction field is still in progress, so there is a necessary condition for mass money flow in exchange.

Liquidity increased from $170 billion in 2008 to the current $246 billion.

There are other reasons causing increase in price and amount of shares at the exchange. Furthermore, the companies with the major amount of transactions at the exchange draw attention.

The companies affecting the increase in exchange index over the past few months included the Telecommunications Company (97 points), Isfahan steel company Fulad Mubareke (57 points), the Chadramali industry and mining company (36 point), Mapna consortium (27 points) and Gol-e Goher company (26 points).

The companies with shares increasing in price at the Iranian exchange are directly related to the authorities, or the establishments close to the authorities. These companies may easily receive state financial aid in case they are in loss. So, they do not fear of loss or drop in prices of their shares during the economic crisis.

According to official statistics, investments put in T-bills at the exchange made a 85 percent profit over the past one year.

Kazakhstan’s largest logistics terminal operator to buy fuel via tender
Kazakhstan’s largest logistics terminal operator to buy fuel via tender
Turkmenistan, Azerbaijan's SOCAR have huge potential for developing co-op
Turkmenistan, Azerbaijan's SOCAR have huge potential for developing co-op
Kazakhstan boosts goods import from Afghanistan
Kazakhstan boosts goods import from Afghanistan
Loading Bars
Latest
Gazelli Group standing beside Azerbaijani nation both in hard and good times (PHOTO)
Kazakhstan’s largest logistics terminal operator to buy fuel via tender
Iran plans to increase exports of non-oil products – Deputy Minister
Turkmenistan, Azerbaijan's SOCAR have huge potential for developing co-op
Kazakhstan boosts goods import from Afghanistan
Azerbaijani PM expresses condolences to Russian counterpart
Volume of loaded, unloaded cargo in Iran’s Shahid Bahonar port up
EIA increases forecast for oil extraction in Kazakhstan
Iran's trade turnover with EAEU member states announced
Baku to host Aerobic Gymnastics World Age Group Competitions for first time (VIDEO)
Kazakh KazMunayGas decreases oil transportation volumes y-o-y
Ex-president of Iran announces his candidacy for president
Oil climbs on solid demand outlook as market awaits fresh cues
Minister discloses Kazakhstan's GDP growth rate from January through April 2021
Trade turnover increased in Turkmenistan
Iranian Foreign Minister's begins visit to Middle East, Europe
Number of countries purchase products from Turkmenistan on exchange
Latest prices for Azerbaijani oil disclosed
EIB to invest in solar plant construction in Uzbekistan
Israeli energy pipeline hit in Gaza rocket attack
Turkmenistan exceeds plan for energy production
Wind market to be 30% weaker in 2021 y-o-y
California governor announces $12 billion homeless plan
First Vice-President Mehriban Aliyeva shared footages from her next visit to Karabakh with President Ilham Aliyev on her Instagram page (VIDEO)
Kazakh-Turkish JV launches tender to buy petrol
Iranian currency rates for May 12
Azerbaijan issues data on compulsory non-life insurance for March 2021
Japan, UNDP join efforts to boost oxygen supply in India's north-eastern region
Snam sees almost 6% increase in total revenues
India to get first round supplies from Hindu Temple of Abu Dhabi
Snam increases technical investment by 5%
Snam reveals TAP’s contribution to net income from equity investments
US looking to jointly produce Johnson & Johnson's single-dose Covid vaccine in India, talks on with SII
India's focus must be how to come out of current COVID crisis, says Canadian Envoy
Import of Azerbaijani products by Belarus up in 1Q2021
Kazakhstan KazMunayGas sees decrease in oil production at major fields
New Covid-19 cases in India have peaked, shows Cambridge tracker
US Working Closely With India On Covid Crisis: White House Official
Egypt Sends 30 Tonnes Of Covid Medical Aid To India
Pm Modi, Boris Johnson To Hold Virtual Summit, Uk To Ship 1000 More Ventilators To India
Azerbaijan - unique space where there is interreligious harmony, cooperation, says Azerbaijani president
Global oil consumption set to rise by over 2 mb/d in Q2
EIA expects Brent price to decrease in second quarter
UK warns on sustainability of post-Brexit N.Ireland trade rules
LNG shipments from Qatar to UAE to resume, signalling improving ties
Oil & gas contracts down in number, rise in value
EIA revises down forecasts for Azerbaijan’s petroleum production
U.S. east coast to rely on petroleum inventories before main pipeline operation resumes
Austria, Georgia eye to implement projects in animal husbandry
WB to allocate Kyrgyzstan $ 20 mln to purchase coronavirus vaccines
Immunization with Sinovac in Georgia likely to begin in May
Iran-Pakistan border markets to be functional in few months
Cyberattack steals info of one million in Turkey’s Konya
Border police deployed in some Israeli cities amid Arab riots
Pipeline outage causes U.S. gasoline supply crunch, panic buying
Global renewable energy growth over 20 years peaks in 2020 - IEA
South Korea mulls commercial use of Northern Sea Route
Bahrain approves emergency use of Russia’s Sputnik Light vaccine — agency
Forum in New Zealand focuses on New Zealand-China economic cooperation, development opportunities
WHO head claims as global COVID cases drop to 630,000 per day
US Department of Energy retains forecast for Brent oil price at $62.3 per barrel in 2021
Samsung sees pandemic-led appliances boom extending run to rest of year
Next meeting on electoral reform to be held on May 14-16
Central Bank of Azerbaijan allocates funds to support financial literacy
Turkish State Mine Administration opens tender for rental of vehicles
Lending to electricity sector in Azerbaijan increases
Kazakh KazMunayTeniz to buy diesel fuel via tender
Iran's Petropars Company orders equipment from local manufacturers
Turkey reports over 14 400 COVID-19 cases
Some of children may be taken to Moscow for treatment after school shooting in Kazan
UN chief condemns Kazan school shooting
Gaza block collapses after Israeli strike, rocket hits Tel Aviv building
Kazakhstan supports solution of Palestinian-Israel conflict by peaceful means
Georgia likely to receive Novavax and Johnson & Johnson vaccines in July
Kazakhstan’s liquids production down in March - OPEC
COVID-19 cases decrease in 80 provinces in a week
Iran, Afghanistan discuss Afghan peace process
Israeli PM says to increase strikes against Gaza militants
Arab FMs kick off emergency meeting on Jerusalem tensions
Hamas and Israel step up attacks as Jerusalem unrest ignites Gaza
No need to evacuate people injured in Kazan school shooting to Moscow
Сompetition season of 2021 successfully started - European Gymnastics President
Identification of victims in Kazan school shooting completed
26 COVID-19 patients dead allegedly due to oxygen shortage in India's Goa
Japan's COVID-19 patients in "serious condition" hit fresh record high
Azerbaijani president, first lady express condolences to president of Tatarstan
President Aliyev expresses condolences to Russian counterpart
Iran's Energy Exchange announces products to be on sale on May 12
Bahar Azadi gold coin price continues to rise in Iran
Foreign investors waiting for decision related to FATF in Iran – official
Azerbaijani journalists view State Border Service's Military Hospital in liberated Gubadly (PHOTO)
Demand for OPEC crude in 2021 revised up
Turkish export of electrical goods to Azerbaijan drops
Shares of Kazakhstan's KAZ Minerals delisted from stock exchange
Export Development Bank of Iran to provide loans to startup companies
Data on cargo shipment through Turkish Kocaeli port over 1Q2021 revealed
Kazakhstan reports increase in new housing prices
Azerbaijan's ADIF continues compensating depositors of closed banks
Turkey sees increase in cement exports to Georgia
Cargo movements in Iran’s Shahid Rajaee port increase
All news