Tehran Stocks' Official Welcomes Economy Ministry, Central Bank Revamping
EghtesadOnline: The restructuring and changes in the management of the Ministry of Economic Affairs and Finance and the Central Bank of Iran have provided the opportunity to expand the capital market, vice chairman of the board of directors of Tehran Stock Exchange, Mahmoud Reza Khajehnassiri, said.
The changes referred to include Abdolnasser Hemmati taking over CBI and Minister of Economic Affairs and Finance Masoud Karbasian having been impeached recently.
“Capacities of the capital market must be introduced to the people. These services are now limited to a select few and in fact, a large part of investors in stock exchanges do not understand the stock market as well as they should. Capital financing companies focus on the strategic development of the capital market and the removal of barriers to market growth. Since the ban on the issuance of investment funds in banks last year, an opportunity arose to gradually familiarize people with investment funds and stock exchanges,” he was quoted as saying by IRNA.
According to Khajehnassiri, the lack of appropriate interactive structures between the central bank and investment funds has prevented the development of the funds, Financial Tribune reported.
Addressing a press conference on Monday, the TSE official criticized the issue of capital shortage in the equity market, adding that with cash flow, prices will be more reliable, earnings will be higher and the stock market will become more profitable. He posited that once new algorithmic and high-frequency trading methods are launched, the trading volume is expected to increase 20 times its current volume.
Stressing the need for the stock exchange to become more active, the official said Tehran Stock Exchange should not refrain from dealing with problems and issues.
Dealing with some issues, especially with regard to introducing new policies for the capital market, has fallen to the Securities and Exchange Organization due to the refusal of Tehran Stock Exchange to follow up on the issues.
The stock market is having a good run these days, with back-to-back rallies and Tehran Stock Exchange’s index reaching new highs.
Khajehnassiri said the future of stock market seems to be bright as well.