Iran’s ebullient stock market is heading for a crash
Wednesday, June 17, 2020
Significance
This was despite a sharp economic contraction, high inflation and currency devaluation. The government has played a significant role in promoting equities growth, with state or quasi-state organisations dominating the market.
Impacts
- A stock market crash would have devastating economic and social consequences.
- With many reluctant to leave their houses because of COVID-19, the growth in online trading technology will accelerate.
- There will be a boom in firms providing stock market advice through social media channels for a small one-off or monthly fee.
- Diversion of funds from the forex market to the stock exchange will temporarily help ward off a new currency crisis.
- With richer Iranians seeking to transfer additional assets abroad, there could be a new boost for the Turkish real estate market.