The Securities and Exchange Organization (SEO) is set to announce further support policies to help address mounting concerns of shareholders, the SEO chief said.
"The measures are unrelated to the newly-announced ten-point support package. We are preparing a new plan of action and will send it to the government's Economic Taskforce," SENA quoted Majid Eshqi as saying.
While the recent package seeks to address some minor concerns of the market, such as the synchronization of trading session at Tehran Stock Exchange and Iran Fara Bourse, and initial public offerings, "The upcoming measures will deal with major concerns of market players," Eshqi said.
"Issues like removing European hub rates in pricing feedstock and energy carriers, or ending the government's pricing policy are among matters that the new package will deal with," he said.
A comprehensive package designed to support the stuttering stock market came into effect at the weekend following the more than 2-year decline in the Tehran Stock Exchange main index. TEDPIX shed more than 46,281 points in the month to Oct. 22 and plunged 3.41% to settle at 1,308,960.
The support plan says henceforth the portfolio of private persons, worth up to a billion rials ($3,000) for each person (this is valid for 96% of private codes active in the bourse) will be insured through the issuance of put options.
As per the plan, new resources will be made available from state funds for share purchase and increase gradually. Also, money allocated to the capital market in the 2022-23 budget to the tune of 50 trillion rials ($151 million) will be deposited with the Capital Market Stabilization Fund (CMSF).
Legal persons, including semi-public companies and financial institutions, retirement funds, military organizations are responsible, according to the new support package, to regularly monitor share prices under their management and avoid selling until market conditions are stable. They have been recommended to take supportive measures such as purchasing shares and publishing put options.
The package did not convince most stakeholders. Azim Sabet, director of Alborz Asset Management Company, said, "Even though the package is well-intended and should have a positive impact on the market, it is more like a tranquilizer,”
"Reviving the bourse demands, among other things, that the government’s Economy Council come up with a concrete and holistic approach to all sectors of the economy," he stressed.
The head of the Security and Exchange Organization (SEO) recently listed eight major challenges the stock market is grappling with, including the increasing trend in bank interest rates, the negative impact on listed company profit margins due to the growth in feedstock and energy prices, mandatory sale prices on companies and the endless increase in currency rates.
