Iran stock market collapses 30%

asia.news.yahoo.com...

Hmm, I wonder who are the big money movers operating out of Iran, and if this stockmarket crisis is one of the beginning to cripple tehran's economy, before going to something else?

It sounds like it's mainly local investors in Iran who are moving to gold or to other stock markets.

Tortuous investment legislation means Tehran's bourse is not played much by foreigners, who until recently could not invest directly.

Market authorities announced plans in April to allow foreigners to buy up to 10 percent of firms listed in Iran. However, they would only be able to repatriate their capital gains and profits after three years.

right, but the fear of an immediate attack on iran by eithe r the us or Isreal, must be enough for local investors to get worried.

Of course this is surpassed by the news to most people that Iran has a stock market.

Of course this is surpassed by the news to most people that Iran has a stock market.

True my brother, Iran has a financial stock market with active trading like most westernised countries. it is a democracy, unlike most Arab countries in the desert, and it has a limited liberty unlike the people in Saudi Arabia

Tehran Stock Exchange

Stock market chaos 'unreal', to be settled soon: President
- Islamic Republic News Agency, Iran

Iran's Stocks Plunge After Vote for UN Review of Nuclear Program
- NYTimes

Usually a market meltdown like that precedes a dramatic event.
Invasion or bombing to start soon perhaps?

They are expecting something like that.. You the know the powers that be will want to crash your economy first and then attack, because they know money runs the world.

Currently right now america is not in any state, military wise, politically wise, diplomatic wise, to launch an attack on iran.

Originally posted by crusader
True my brother, Iran has a financial stock market with active trading like most westernised countries. it is a democracy, unlike most Arab countries in the desert, and it has a limited liberty unlike the people in Saudi Arabia

Hmmm, its a democracy as long as the ruling mullahs like what is going on as evidenced by the wholesale disqualifications of reform candidates.

That being said, recent threats by thier hard line president regarding reducing oil production if sanctions are brought regarding thier nuclear program would spook investors. iran's economy is largely based on petro $$$$$

TextThat being said, recent threats by thier hard line president regarding reducing oil production if sanctions are brought regarding thier nuclear program would spook investors. iran's economy is largely based on petro $$$$$

America's economy is largely based on debt and virtual monoply money with no value at all, how about that?

[edit on 9-10-2005 by crusader]

Originally posted by crusader
[America's economy is largely based on debt and virtual monoply money with no value at all, how about that?

[edit on 9-10-2005 by crusader]

Touchy touchy, America's GDP is far from based on petro dollars is the main point. Backed by the stability of the worlds current longest standing system of government, biggest economy (Heck California is the fifth biggest in the world), etc etc etc.

The point I was trying to make was that if your economy is based on oil and your hard line president (No doubt sporting a "I love the Mullah's t-shirt) rattles the sabre or in this case the barrel, then investors are gonna bail and put thier money in that old standby gold. Simple fact of life.



[edit on 10/9/05 by FredT]

Honestly, I wouldn't connect this downturn with international diplomacy as much as I would with the price of oil.

Much of America's refining capacity in the Gulf coast will remain offline through year's end.

Although the price of gas is up (markedly) in the USA, the price of crude is not.

You don't purchase crude if you don't have the means to refine it. This fact has reduced American purchases of international oil, which has eased up supplies world-wide. The price of spot oil was under $60 briefly last week.

This probably has had more of an impact on Iran's market than any nefarious plot by anyone.

One of the problems with Bourses in central Asia is a lack of transparency. Other than Turkey and Mongolia, most markets are the playthings of central government policy. The article pointed out the limits on foreign-owned investment, which makes me think that the downturn is hardly caused by American investors.

Mexico has similar policies (for Americans), which has cut into the international interest ing their market.

The more serious problem in central Asia is a lack of transparency. Companies are not required to publish annual reports, or they aren't required to adhere to standard accounting practices. Or the government gives "gifts" to state-owned industries to make them appear profitable and encourage investments.

When the truth hits the local financial press, you have a collapse.

You'd learn more by looking at a financial newspaper from Tehran; that will tell you what's REALLY driving the downturn.


Incedentally, if you want to trade a central Asian bourse, I'd recommend taking a look at Mongolia. Unlimited foreign investment, and total market transparency for both public companies and their member-brokers. In some ways, probably a more efficient market than the US! A couple of years ago, they had over 100% average return on investment; so did Turkey.