Tehran Stock Market Faces Tensions

Iranian media reported protests and demonstrations by a number of shareholders and capital market activists in Tehran on Saturday, July 1st. According to these reports, the protesters disrupted activities in the stock market at the glass hall on Hafez Street in Tehran. Domestic media in Iran reported broken windows, trash cans being thrown, loud shouting, and intense protest slogans in the central stock market of the capital. The Tasnim news agency described the motivation for the protests as 'the unfavorable situation of the capital market and incurred losses,' and characterized the protesters as mostly small shareholders. The ISNA news agency also identified the protesters as 'shareholders of the meter manufacturing company' who installed banners against the stock organization in the Hafez hall. According to ISNA, shareholders accused the stock organization of 'failing to protect their information and assets.' However, Ali Sahraei, the deputy of the Tehran stock market, told the Fars news agency that the protests by some traders on that day 'are not related to the overall transactions in the stock market.' According to Sahraei, 'the prolonged suspension of trading symbols and the freezing of shareholders' assets' and 'the failure of the meter manufacturing company's forecasts to achieve certain assets' were the reasons for these shareholders' protests. Hamid Nourbakhsh, the director of public relations and international affairs of the Tehran stock exchange, also confirmed Sahraei's statements. Meanwhile, Tasnim reported that 'calls were made to police 110' during the protests on Saturday. Tasnim added that the first two rows of brokerage firms in the stock exchange hall were evacuated as a result of the protests. Economic media in Iran had previously reported on the investigation of the 'meter manufacturing company's publisher' in the judiciary, but noted that the case has not yet led to a ruling, and shareholders' assets remain frozen. The protests in the Hafez stock market coincided with the first day of resuming activities after the Eid al-Fitr holidays. At the same time, Iranian economic media reported a 95-point increase in the stock market on that day, with the overall index reaching 78,800 points despite the protests. The protests by Tehran's capital market shareholders occurred on the same day as larger gatherings in several cities across Iran protesting the performance of various financial institutions. Telegram channels that had announced the calls for Saturday's gatherings reported demonstrations in Hamadan, Ahvaz, Babol, Mashhad, Sirjan, and Moghan on that day. In Hamadan, protesters gathered in front of the Hamadan governorate in protest against the Arman institution. In Ahvaz, protesters gathered in front of the National Bank, and reports indicated chants against the Central Bank's director general. Protesters in Babol held their demonstrations in Hamzeh-Kala Square with slogans 'Caspian, have some shame, release the deposit.' In recent days, many protests have also been held in Tehran and various cities to retrieve deposits from banks and various financial companies. The largest protests were held by depositors of Caspian institutions in Tehran, including in front of the IRNA office, the official news agency of the Islamic Republic of Iran, as well as in Rasht, Mashhad, and other small and large cities. In recent days, financial losers have also protested against the Arman financial institution in Nahavand, Lorestan, and Mashhad. Riot police affiliated with the Revolutionary Guards and law enforcement have been present at some of the recent gatherings, and at least in one case, clashes occurred between these two groups, apparently in support of the protesting people, without the use of weapons. Central Bank officials and the Economic Commission of the Parliament have denied rumors of banks going bankrupt and have urged people not to act on rumors. Valiollah Seif, the Central Bank's director general, and Farshad Heydari, the Central Bank's deputy, have stated that the performance of some of these institutions is under review, but no bank or institution can return all investors' deposits. Depositors are worried that the bankruptcy of institutions will waste their principal and profits. Many small depositors described receiving monthly profits from these institutions as their main financial support for their families. Meanwhile, according to Iranian media, on Saturday, July 1st, during a meeting to review Iran's monetary policies, attended by Ali Tayebnia, the Minister of Economy and Finance, and Valiollah Seif, the Central Bank's director general, participants emphasized the need to lower bank interest rates. At the same time, reports indicated an increase in the price of the dollar and several other major currencies on Saturday, July 1st.