Reports indicate that the Tehran Stock Exchange index once again fell on Tuesday, August 13, dropping to 1,991,000 points.
Over the past 24 days, the overall index has been negatived for 20 days, with the total index declining by 210,000 points, equivalent to more than a 10% drop.
The National Development Fund recently injected 6 trillion rials (approximately 10 million dollars) into the stock market in two separate rounds, but this action failed to prevent the index from declining.
On Tuesday, following a 7,568-point drop in the overall index, Mohammad Reza Farzin, the Governor of the Central Bank, announced that in today’s Supreme Council of the Stock Exchange meeting, it was agreed that support from the banking system for the capital market would begin on Wednesday.
He did not explain exactly what measures the banking system would take to “support” the stock market or why the recent financial interventions by the National Development Fund have not helped the stock market’s situation.
Earlier, the Stock Exchange Organization had requested the creation of a credit line or the deposit of at least 500 trillion rials (approximately 833.33 million dollars) into the stock market.
Estimates show that nearly 50 trillion rials (approximately 83.33 million dollars) of real money has exited the stock market in just the past two weeks. The largest capital flight from this market occurred on July 31, following the killing of Ismail Haniyeh in Tehran and the subsequent threats of retaliation by the Iranian regime the following day.
With reports circulating about the possible “definitive decision” by the Iranian regime to attack Israel, nearly 12 trillion rials (approximately 20 million dollars) exited the stock market again on August 12.
The drop in the stock index and the outflow of real money from the market means significant losses for individuals who, for whatever reason, have been unwilling to sell the shares they purchased.
The fluctuations in the stock index over the past few years have followed an unusual pattern. For example, during the economic crisis and the decline in Iran’s GDP, the stock index rose from 500,000 points in mid-March 2020 to 2.5 million points in the spring of last year.
Some experts have reported deliberate manipulation of the stock market by the government, a claim that both the twelfth and thirteenth administrations have denied.
