Despite a seasonal withdrawal of funds as investors prepare for the
Persian New Year holidays, active stock market accounts continue to reflect
optimism, said Iran’s Securities and Exchange Organization (SEO).
Historical trends suggest that Iranian equities tend to rally in the
early weeks of the new calendar year, and the sustained level of available
funds in brokerage accounts indicates investors are poised to enter the market.
Liquidity and Market Momentum
Active liquidity in brokerage accounts has traditionally fueled market
demand and price growth. When these funds flow into stock purchases, trading
volume rises, increasing overall market liquidity.
Market cycles have shown that during bullish phases, the influx of
cash from brokerage accounts can accelerate stock price gains. Even during
periods of market consolidation, this liquidity serves as a stabilizing force,
preventing excessive volatility.
Investment Funds and Market Participation
Beyond the 205 trillion rials in brokerage accounts, additional
capital is held in equity and mixed investment funds, further reinforcing the
potential for market growth.
According to official statistics, the total value of exchange-traded
investment funds (ETFs) across Iran’s four stock exchanges reached 6,000
trillion rials ($120 billion) by February 2025, more than doubling from 2,740
trillion rials a year earlier.
Equity funds primarily invest in stocks, while fixed-income funds
allocate a portion of their assets to equities under regulatory guidelines.
Mixed funds balance investments between equities and fixed-income securities,
providing additional capital that could enter the market.
Investment funds act as key intermediaries, pooling liquidity from
retail investors and directing it into various asset classes. During past
market rallies, inflows into stock-focused funds have driven increased demand
for equities, lifting key indices.
While these funds can enhance market liquidity and reduce risk for
retail investors, their overall impact depends on macroeconomic conditions and
investor sentiment.