02 August 2010

iranian stock market; economy: booming

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press tv reports on a world federation of exchanges, report that the iranian stock market is riding high. iran's bourse has had its best day in the markets history.

tedpix index, the main index in the tehran exchange, has gained 1.29% to close at over 16,000 points. a record high for the forty-three year old bourse. the index has now posted a 30% jump since 20 march 2010 when it reached over 12,000 points on the last day of the iranian year.

experts say stocks are boosted by a government decision to sell off nearly 20% of its equity in two major automobile companies. reports show the positive stock market trend is also due to lower bank interest rates and investments in the construction sector.

the head of the tehran stock exchange, hassan ghalibaf asl, says sanctions imposed on iran have done nothing to dent a boom stock market.

rodney shakespeare, a professor of binary economics, says that he hopes that iran does not privatize into the hand of just a narrow clique -- it should privatize much more widely into the rest of the population and that iran should not make the mistake of opening its markets widely to foreign capital. that is always a great mistake, he said.

the reason it would be a mistake according to professor shakespeare, is that ownership should to go its own people and not to foreigners.

professor shakespeare explains that the global capitalist system depends ultimately on its control of other countries by its ability to put them into debt and also to control ownership.

iranians should be very, very, wary of going back and being part of the western capitalist system, he said.

the iranian bullish market has been going on for the past three years says ghambar naderl an iranian journalist and commentator. he says that the car industry has been selling cars at a high rate while in the west car markers are selling cars at two-for-one prices.

mr. naderl says that iran is not integrated into the global economy and that is one reason why the economic downturn in the west has had the least impact on iran's economy.

mr. naderl agrees with professor shakespeare that iran should be very careful about foreign investment but unlike the west, which the regulators were also to be blamed for the downturn of the global economy -- iran has the central bank, the government and a council of private sectors who are overseeing and regulating the financial market.

additionally, mr. naderl says that iran has low interest rates and the housing market is booming. the iranian government also has guarantees for foreign investors "if they make losses which is blamed for political reasons, political situations, like threat of war, then government is going to compensate for them."

professor shakespeare says that iran should not take american investment "that would be a great mistake," he said.