False Peugeot News Shakes Iran Auto Stocks

EghtesadOnline: Uncorroborated reports circulating on social media about "the possible departure of Peugeot from Iran" due to “pressures imposed by the US government on the French firm,” disrupted Tehran’s stock market in recent trading.

News ID: ۷۴۱۷۶۳

28 May 2017

According to data provided by Tehran Stock Exchange, shares of Iran’s biggest carmaker, Iran Khodro, plunged 4% and reached 2,786 rials ($0.7 for each share).

This is while the auto industry had seen a boost in trading before the mid-week, but it plummeted as soon as the rumor mills started working.

The initial rise in IKCO stock indicator earlier in the week was buoyed by the positive news of President Hassan Rouhani's re-election. But shares dropped as the rumor spread on social media apps like Telegram, Financial Tribune reported.

Following the nuclear deal, called the Joint Comprehensive Plan of Action (JCPOA) which came into effect in January 2016, the price of automotive  shares registered unmatched growth for four consecutive months. The growth was boosted by reports of European automakers returning to Iran.