Foreign exchange market stability to bring growth to the stock market: expert
TEHRAN – The Iranian stock market is expected to trend higher as the country’s foreign exchange market has stabilized in recent months, according to stock analyst Azim Sabet.
“As an important factor in the market, [foreign] exchange rates have reached a stage of stability; therefore, we can expect a reasonable uptrend in the market, ”Sabet told IRNA on Saturday.
He highlighted the effective measures taken to improve the current trend of stock transactions and added: “One of the important issues regarding the current trading environment of the stock market is the management of market fluctuations.
The expert stressed that people should not expect the stock market to always follow an uptrend, saying: “Sometimes companies report on their performance and activities within a certain time frame. time and shareholders should use this information to make decisions based on the company’s value. “
Foreign exchange transactions can run a reasonable course if the country’s macroeconomics are managed and no sudden changes are made, he said.
The unprecedented swings in the Iranian stock market in recent months have led shareholders, experts and academics to call on the government to increase its support for the market.
Following the support measures taken by the government, the market is gradually getting back on track and experts believe that the market is regaining the confidence of citizens.
Market expert Reza Alavi believes that the influx of liquidity in the market and the increase in the value of transactions indicate that people are once again trusting the capital market.
“At present, other markets such as gold, foreign currencies, and cars are not attractive enough for investors, and the stock market is still a good place for people to invest,” said Alavi at IRIB.
“After the electoral debates, people came to the conclusion that the stock market is one of the priorities of the new government, and for this reason, they trusted this market, and consequently, the inflow of new capital in the market has increased, ”he said.
He further mentioned the rise in world oil prices and the stability of the foreign exchange market as factors that resulted in the stability of the stock market.
EF / MA