What is the reason for the stock market crash?

What is the reason for the stock market crash?

Imam Sadeghi’s are the main culprits for the stock market crash.

What is the reason for the stock market crash? According to Iran Gate Bourse report, Tehran Stock Exchange experienced its third largest crash in history during the third trading day of the third week of Ordibehesht. Many market participants believe that there is a dangerous and mafia-like operation behind this heavy fall. Some experts also point fingers at the government and the economic team of President Ebrahim Raisi’s cabinet.

Today, on 18th of Ordibehesht 1402, the Tehran Stock Exchange overall index experienced a drop of about 55%. However, the equal-weighted index had a worse situation and recorded the largest decline in the history of the Tehran Stock Exchange with a 45% decrease. The value of retail transactions in the market also faced a drop of about 15 trillion Tomans and ended up around 10 trillion Tomans.

These events occurred while the previous day, the overall index experienced a decline of over 95,000 units, and the equal-weighted index also had a drop of over 30,000 units, causing great concern among shareholders. Some believe that this concern influenced the market’s behavior, leading to today’s strange and unprecedented events.

What is the reason for the 10% drop in the stock market?

As mentioned, the Tehran Stock Exchange’s overall index has experienced a decline of approximately 10% during the past two trading days, on 17th and 18th of Ordibehesht. However, what is the reason behind this event, and why have shareholders faced such a significant shock?

According to many experts and market participants, this heavy decline over the past two days is not only unnatural but also a clear indication of manipulation of off-market flows within the stock market. Some others believe that the government has intentionally taken action to poison the market to prevent a repeat of the heavy decline in 1399 (the previous year). However, which of these claims is true is the main topic of discussion in the current stock market moments.

Signs of mafia presence in the stock market

Heavy sell queues have formed in the Tehran Stock Exchange, most of which have been created by market entities. This event has occurred so coordinated and suddenly that many believe such an action has undoubtedly been ordered and under the pressure of the Stock Exchange Organization and subsequently the government. Is such a claim correct?

According to most Tehran Stock Exchange activists, the formation of heavy selling queues in the stock market has been carried out by the government’s order. However, experts believe that this manipulation has been done by a group of managers known as the Imam Sadeghi group and supporters of the Islamic economy. These individuals point their fingers at Ehsan Khodadouzi, the Minister of Economy in Raisi’s government, and Majid Eshghi, the head of the Stock and Exchange Organization.

According to this group of stock market specialists and economists, this incident is not only a result of the incompetence and lack of expertise of the managers, but they also believe that the Imam Sadeghi group considers the stock market as a casino and is not pleased with its development.

Although some people believe that the Imam Sadeghi group not only has fundamental problems with the stock market but also pursues their own financial interests. These interests can be unimaginably fulfilled through recent fluctuations. Of course, the fulfillment of such interests will only happen if the mentioned group has access to informational rent, which naturally makes them the main cause of the heavy selling queues and the consequent severe price fluctuations of stocks.

Khodadouzi should be impeached and Eshghi should be dismissed.

Given the series of events mentioned, most stock market activists insist that Ehsan Khodadouzi, as the main person responsible for the current market situation, should be dismissed or impeached as soon as possible. These individuals believe that his ambiguous justifications regarding Islamic economic principles with socialist tendencies have put their capital at serious risk. Therefore, they demand the immediate dismissal of Ehsan Khodadouzi from the Ministry of Economy.

However, criticisms of the current performance of the current head of the Stock Exchange Organization are much more severe than those of the Minister of Economy. This group believes that the Stock Exchange Organization has not only forced legal entities to sell uniformly and intensified the supply side in the stock market, but also has not closed the market even when the index has fallen beyond the 5% threshold.

It should be noted that the Securities and Exchange Market Law grants the authority and license to the Stock Exchange Organization to declare the closure of the market if the overall index falls more than 5%. However, the law does not oblige the Stock Exchange Organization to demonstrate any reaction in this regard.

In any case, stock market activists emphasize that the stock exchange organization is obligated to provide investment security in the market. However, the performance of the organization’s head in dealing with the recent stock market crisis has shown that not only Majid Ashqi, but the entire regulatory system of the market has taken a step back in ensuring the security of shareholders. Therefore, most individual and small shareholders of the Tehran Stock Exchange insist on the immediate removal of Majid Ashqi and other senior managers of the stock exchange organization.

Where is the revolutionary parliament?

After a 10% drop in the stock market index, some members of parliament and members of the economic commission have shown reactions. But the most important and thought-provoking reaction came from Mojtaba Tangar. Tangar referred to heavy selling by legal entities and emphasized the need for a meeting of the Supreme Council of the Stock Exchange. However, the stock exchange organization has not only rejected the immediate holding of a meeting to investigate this incident, but also dismissed any possibility of closing the market.

However, the sounds coming from the parliament reinforce the possibility that the Economic Commission is determined to initiate the motion of impeaching the Minister of Economy. It should not be forgotten that the intense confrontation between the government and the parliament, which has intensified since the day of the impeachment of Fatemi Amin, can act as a catalyst for targeting the second minister of the government, Ibrahim Raisi, by the supporters of Baharestan. Now we have to wait and see if the representatives will continue to confront and conflict with Ibrahim Raisi and the Imam Sadeghi team in managing the country’s economy, or if they lack the courage to bring Raisi to parliament for the second consecutive time within a month.