TEHRAN – As the adviser to the head of Iran’s Securities and Exchange Organization (SEO) announced, the organization has signed 20 cooperation agreements and memorandums of understanding (MOUs) with foreign stock exchanges and supervisory entities, has IRNA reported.
According to Bahador Bijani, several foreign delegations have entered the country’s capital market in recent months, which is a positive sign that the shadow of international problems has been removed from the market.
“Previously, the international transactions of companies active on the stock exchange faced certain problems and now these problems seem to have been solved to some extent,” Bijani said.
The official noted that the SEO has also become a permanent member of the International Organization of Securities Commissions (IOSCO) and is expanding its international collaborations through this organization.
Stating that IOSCO regulates and supervises more than 95 capital markets around the world in 105 executive areas, he said: “Iran can play a bigger role in an organization that regulates and supervises more than 95% of the markets of global capital”.
The Iranian stock market has been struggling for months to get back on track, although various internal and external factors are preventing this market from reaching its true potential.
However, market analyst Hassan Kazemzadeh believes that the market has the potential to grow despite the mistrust created in the market as a result of some bad decisions.
“Of course, there are ups and downs, but no matter how distrustful, changes in major economic factors will affect the market, but this effect happens gradually and over time,” Kazemzadeh said.
According to the analyst, the uncertainty regarding supervisory policies, especially interference in the valuation of corporate actions, imposition of various duties, imposition of corporate expenses such as taxes and duties export, etc., made shareholders pessimistic about the market.
“Although there is 30 to 40% growth potential in the market, even professionals are disappointed,” he said.
Regarding the capital market situation in the second half of the year, Kazemzadeh said, “According to fundamental analysis, many stocks that are profitable, whether their profit margins or profitability are high or low, have the potential to achieve their price cap of the Iranian calendar year 1399 (ending March 20, 2021).If this happens, the market index will also exceed the cap of that year.