Predictability in Iran’s stock market these days is gone and investors are going down the rabbit hole with it.
They still eye companies’ performance, macroeconomic indices and parallel markets’ movements, but what sways them in the end is “news”. As a result, confusion can only be dissected in retrospect.
However, this is not a new phenomenon. Such erratic market movements were first witnessed in early December 2017, after about three quarters of radio silence. Blame was mostly laid at the door of foreign currency market upheaval and political concerns regarding Iran’s nuclear deal.
The trend continued for the next two quarters, as rial kept devaluating against the US dollar, the US administration hardened its stance against Iran and confusion ensued over the government’s impromptu policymaking.