A five-percent fall in Iran’s stock market index in two days has led to a ban on trading that includes 90 percent of all shares on Monday.

Media in Tehran reported that Monday alone the index fell by more than two percent at the beginning of trading. Following a similar fall on Sunday, the decline on Monday led to most shares being “locked” and traders forming long lines to sell unwanted stocks.

Although the fall is not considered dangerously high by international standards, Iran’s stock market is controlled by the government and investors fear possible machinations in inflating and deflating the market.

In July 2020, Tehran’s stock market fell by more than 30 percent in one week and some shares by as much as 50 percent, wiping out the savings of many small investors who had believed government promises of a safe stock market. Some observers said that government entities had inflated the stock market and ripped large profits before its sudden fall.

The memory of the 2020 crisis has remained strong among investors who become jittery at any sudden downturn.

In recent days, government media was hyping positive news about the stock market and encouraging people to invest.

Fararu website in Tehran reported that sell orders totaling nearly $300 million were pending on Monday as the market closed.

Eighty percent of Iran’s economy is controlled by the government or large conglomerates controlled by the ruling regime. Tehran’s stock market is no exception as government appoints officials who control it.