Stock Market Remains Turbulent, Initial Public Offerings Canceled 'Until Further Notice'

The trend of capital outflow from the stock market and the indifference of investors to the statements and actions of relevant officials and institutions have increased concerns regarding the conditions for the offering of new company shares, leading the Securities and Exchange Organization to announce the cancellation of initial public offerings 'until further notice.' Iranian news agencies reported that Ghadir Masoumi Khanqah, the new director of stock market supervision at the Securities and Exchange Organization, considered the cancellation of initial public offerings as a measure 'to support the capital market given the current conditions.' The newspaper 'Donya-e-Eqtesad' published in Tehran noted today, Sunday, February 18, that the index approaching the psychologically significant level of 2 million units indicates that if demand in the stock market is not supported in the coming days, we may witness intensified supply and ultimately a decline in the index to lower levels. According to this newspaper, on Saturday, February 17, the overall index of the Tehran Stock Exchange faced a decline of 0.89%, marking the highest percentage decrease in the last 17 trading days. Accordingly, on Saturday, 29.3 trillion tomans of capital outflow was recorded for the fourth consecutive day. Some experts and market participants believe that the issuance of 30% deposit certificates, the issuance of two circulars on petrochemical feedstock prices, the surge in mining royalties, and the issuance of pricing guidelines for oil for refineries are just examples of 'anti-production' and 'anti-investment' actions that have recently overwhelmed the capital market. The current situation in the stock market continues despite one of Ebrahim Raisi's economic promises to organize the stock market upon reaching the presidency. Raisi stated, 'We are seeking to stabilize the capital market, ensure shareholders' tranquility, and create a thriving capital market that benefits shareholders and the country.' However, Raisi's statements have not been implemented in practice, and in this regard, the newspaper 'Donya-e-Eqtesad' noted in its analysis of the stock market conditions during Raisi's presidency that 'an examination of the Tehran Stock Exchange's trend since August 2020 shows that whenever the market has taken an upward leap, certain policies have hindered the continuation of the upward trend.'