‘Stock market gains on lower interest rates, deregulation’

TEHRAN – Iran’s stock market has seen positive momentum in the past month, driven by lower interest rates, the removal of price controls, and supportive measures from the Ministry of Economy and the Securities and Exchange Organization (SEO), a market analyst said.

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In an exclusive interview with IRIB, Ali Pazaki, a capital market expert, cited the replacement of the NIMA exchange rate with a negotiated exchange rate as a key factor behind the recent market uptick, saying: “Since many listed companies are export-oriented, this shift has boosted their profitability,” he explained.

He added that the government’s removal of mandatory price controls has significantly benefitted certain industries, especially automotive firms. “Given that automakers were subject to regulated pricing by the Competition Council, allowing their products to be priced through supply and demand on the commodity exchange has positively impacted their financial statements and those of parts manufacturers.”

Pazaki pointed to reduced systematic risks and easing regional tensions as additional drivers of the positive trend in the stock market. “These factors have created a calm environment for the capital market in recent days, allowing investors to make decisions based on economic indicators,” he noted.

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Looking ahead, Pazaki predicted a continued positive outlook for the stock market. “Given the ongoing supportive measures and the inherent value in listed companies, the market is expected to maintain its upward trajectory. Support from the minister of economy and increased financing for listed firms can contribute to national development projects, ultimately fostering a more dynamic economy.”

EF/MA