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Less than one percent of Iranians active in stock market

An analyst for Stockholm Stock Exchange said in Tehran Sunday that less than one percent of the Iranians actively participate in the stock market. "The figure is close to 60 percent in Europe," Ali Eskandari said, IRNA reported from Tehran.

Speaking at a gathering on 'Developments in Capital Markets,' he said Tehran and Istanbul stock markets, due to proximity to the European Union (EU), will experience a favorable growth in the next decade.

"With the entry of large private companies to the market, the market will be competitive with other regional markets."

Eskandari further stressed that through new and innovative instruments, capital should be channeled to the industrial sector. He underlined that transparent information is a necessity for efficient functioning of the stock markets.

He also warned on the likelihood of bursting of 'bubble' in stock prices in the Tehran Stock Exchange (TSE) saying 'an earthquake in Tehran will cause the prices to crash'.

An economy official said here last week that foreign investors have expressed interest in investing in TSE.

Deputy Economy Minister and head of Iran Investments, Technical and Economic Assistance Organization Mohammad Khazaie said, "So far, investments proposals to the tune of rls 25 billion have been presented to TSE.

"These proposals have been partially made by Arab countries and some others by Iranian expatriates living in Spain and Britain which are being evaluated."

The TSE officials are of the opinion that some restriction should be applied to foreign investments in the proposed executive bylaws pertaining to amount of profit repatriation and level of participation in the exchange, Khazaie underlined.

He said the ceiling as another restriction is necessary due to TSE unpreparedness to absorb a huge amount of capital investment. "The process of foreign investments in TSE should be gradual and systematic," he added.

... Payvand News - 12/22/03 ... --

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