TEHRAN - The Iranian government plans to use resources from its sovereign wealth fund to help revive trade at a local stock market that suffered from the Israeli regime’s recent aggression against the country.
A member of the Iranian parliament’s Manufacturing and Mining Committee has said that the National Development Fund (NDF) and the Central Bank of Iran (CBI) will soon provide emergency funding to support the local stock market.
“It has been agreed that the government and the CBI should act seriously to support the capital market,” said Mostafa Pourdehghan.
Reports published in the local media on Tuesday said that trade in the Tehran Stock Exchange (TSE) had significantly dropped a week after Israel halted its 12-day aggression against Iran as part of a ceasefire brokered by the U.S. and accepted by the Iranian government.
TSE’s main index had dropped by more than 6% to below 2.8 million points in the past three days, according to the Tasnim news agency, which said that investors had withdrawn some 50 trillion rials (nearly $55 million) from the market due to uncertainties caused by the war.
Business leaders said that the government had also agreed to provide special support for major manufacturing and petrochemical companies that lead the stock market in Iran.
Pourdehghan said the joint NDF and CBI funding would significantly boost trading in the TSE and other stock markets in Iran.
“It had been expected that the market would experience hysteria after the war ... but we are waiting for a return to the normal conditions,” he said.