Thursday, March 28, 2024
HomeIran News NowIran Economy NewsDomino Collapse of Banks in Iran

Domino Collapse of Banks in Iran

f160d9a4-756b-4e9a-9c57-6acae1020454_16x9_600x338

NCRI – On March 8, 2016. At the end of the trading day, in Tehran stock exchange, the Iranian ‘Mellat Bank’ stock fell 45 percent, and the likelihood of bankruptcy of Bank ‘Sarmayeh’ was strengthened. The value of other Iranian banks is also decreasing with a sharp slope.

According to the state-run ‘Entekhab’ website on March 8, at the end of the trading day on Wednesday March 8, 2016, the stock market dropped 514 points and fell to 76285 points. Iranian Copper Industries with 73 points, Shabriz (Tabriz Oil Refinery) with 69 points, Webmellat (Bank Mellat) with 60 points had the most negative effects on falling stock market index.

At the end of today’s trading day, in the bank and insurance group, a serial of bitter falling prices continued in most banks. In this regard, because of the continuous fall in the value of Webmellat (Bank Mellat), the Bank’s shareholders sold 61 million shares. Which indicated the fall of more than 45 percent of the bank’s share value since July of last year.

In the stock market, when the value of a company goes down, its shareholders start to sell their shares and form a “line up to sell”. In contrast, when the value of a company’s stock increases, shareholders are encouraged to buy and form a “line up to buy”.