TEHRAN (Iran News) – The value and size of trade at the main Iranian stock market, TSE bourse, reached levels described by experts as truly unbelievable.

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As previously announced, TEDPIX has risen 13,070 points, or 5.17 percent, to 266,127 at the end of the past Iranian calendar month of Mordad (August 22).

Some 64,126 billion securities worth 215.639 trillion rials (about $5.134 billion) were traded through 6.444 million deals at TSE during the past month, indicating 8 percent and 21 percent drop in terms of the number and value of securities, respectively, while 16 percent fall in the number of trades compared to its previous month.

Meanwhile, as announced by Fariba Akhavan, the deputy managing director of Central Securities Depository of Iran (CSDI), some 47,000 new trading codes were issued in Iran’s stock market during the fifth month.

With the new codes issued, the total number of trading codes in the country’s capital market reached 11.042 million, Akhavan said.

She also said that 92 codes have been issued for the foreign shareholders since the beginning of current Iranian calendar year (March 21) and the total number of foreign shareholders’ codes is 1,366 at the moment.

The first trading code was issued for a foreign shareholder in Iranian calendar year of 1373 (1994-95) to let it commence its activity in Iranian capital market.

Presence of new shareholders in Tehran Stock Exchange (TSE) rose 40 percent in the past Iranian calendar year 1396 compared to its preceding year.

Based on the already released reports and data, Iran’s exchange markets witnessed fruitful performances and results in the past Iranian calendar year 1397 (ended on March 20, 2019).

Applying new financial instruments in Iranian capital market was another achievements of the exchange markets during the past year, as TSE officially launched “futures” in mid-December 2018 for more risk management and IME launched “option” in early March 2019 in an approach to diversify financing methods for agricultural products.

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Also, the statistics showed a 9.2-percent growth in TEDPIX, the main index of TSE, which stood at 234,879 points, and a 12.6-percent rise in IFX, the main index of IFB, which stood at 2,978 points at the end of the third month.

Based on the already released reports and data, Iran’s exchange markets witnessed fruitful performances and results in the past Iranian calendar year 1397 (ended on March 20, 2019).

Applying new financial instruments in Iranian capital market was another achievements of the exchange markets during the past year, as TSE officially launched “futures” in mid-December 2018 for more risk management and IME launched “option” in early March 2019 in an approach to diversify financing methods for agricultural products.

This progressive trend is also continuing in the current year, as TSE Head Ali Sahraei announced on Saturday that TSE plans to launch a new market named “prime market” in which the price range for the shares increase.

He said that only companies with a minimum transparency score of 70 (out of 100) and floating stock of at least 25 percent would be accepted in the prime market.

Sahraei also said that there is no difference regarding rules governing market makers in this and other markets, adding that participation of market makers is mandatory in the prime market.

TSE main index TEDPIX has increased 56,220 points or 20.4 percent to 234,879 during the first quarter of the current Iranian calendar year (March 21-June 21).

As reported, some 258,055 billion securities worth 723.503 trillion rials (about $17.226 billion) were traded through 17.999 million deals at TSE during the three-month period.

Also, on June 24, during the meeting of IME shareholders, IME Managing Director Hamed Soltani-Nejad said that this exchange has prepared ten macro plans to improve its performance during the current Iranian calendar year.

He mentioned development of underlying assets through existing instruments, development of financial instruments for commodity-backed securities, expansion of market size and depth, increasing cooperation with other organizations, and strengthening IME brand as some of the mentioned macro plans.

Soltani-Nejad has previously announced that IME accounted for 39 percent of the value of the total trades in the Iranian capital market during the past Iranian calendar year.

He put the value of IME trades at 1.78 quadrillion rials (about $42.3 billion) in the past year.

The value of trades at IME rose 52 percent in the past calendar year from its previous year

Over 24.84 million tons of commodities valued at 884.3 trillion rials (about $21.05 billion) were traded at the physical market of IME, showing seven percent fall in the amount and 77 percent rise in the worth of trades year on year.

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Based on the already released reports and data, Iran’s exchange markets witnessed fruitful performances and results in the past Iranian calendar year 1397 (ended on March 20, 2019).

Applying new financial instruments in Iranian capital market was another achievements of the exchange markets during the past year, as TSE officially launched “futures” in mid-December 2018 for more risk management and Iran Mercantile Market (IME) launched “option” in early March 2019 in an approach to diversify financing methods for agricultural products.

Futures contracts (more colloquially, futures) are financial contracts obligating the buyer to purchase an asset or the seller to sell an asset at a predetermined future date and price.

Option is a contract which gives the buyer (the owner or holder of the option) the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price prior to or on a specified date, depending on the form of the option.

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The first market’s index rose 6,543 points to 167,686 and second market’s index added 20,000 points to 436,064, showing 4.06 percent and 4.81 percent growth, respectively, in the mentioned week.

Based on the already released reports and data, Iran’s exchange markets witnessed fruitful performances and results in the past Iranian calendar year 1397 (ended on March 20, 2019).

Applying new financial instruments in Iranian capital market was another achievements of the exchange markets during the past year, as TSE officially launched “futures” in mid-December 2018 for more risk management and Iran Mercantile Market (IME) launched “option” in early March 2019 in an approach to diversify financing methods for agricultural products.

The post TEDPIX gains 9,308 points in a week appeared first on Iran News Daily.

Futures contracts (more colloquially, futures) are financial contracts obligating the buyer to purchase an asset or the seller to sell an asset at a predetermined future date and price.
The ceremony to launch the futures contract, which was held at the place of Central Securities Depository of Iran (CSDI), was participated by a number of Iranian capital market official including Iran Securities and Exchange Organization (SEO) Head Shapour Mohammadi and TSE Head Ali Sahraei.

CSDI is the sole registrar, central custodian and clearing house for the Iranian financial market of four exchanges including TSE, Iran’s over-the-counter (OTC) market known also as Iran Fara Bourse (IFB), Iran Mercantile Exchange (IME), and Iran Energy Exchange (IEE).

Addressing the Sunday ceremony, TSE Head Ali Sahraei said that futures contract is one of the risk management tools (also called hedging tools) which is today becoming operational at the TSE.

He said: “Jurisprudence Committee of the SEO [which oversees compliance of capital market instruments with sharia rules] has approved the regulations related to the futures and we hope that it will act as a highly-applied derivative for hedging in the capital market.”

“Today we launch futures for seven indexes mainly in vehicles, banking, base metals, minerals, refined products and petrochemicals sectors”, Sahraei further announced.

‘Futures highly significant for market balance’

Addressing the same ceremony, SEO Head Shapour Mohammadi said that futures are some very important instruments for the market balance, while they are also some strong hedging tools.

They provide investment opportunities for those who are seeking the amount of profit more than they can earn in the normal market deals, the official noted.

He further highlighted the significance of taking the advantage of new financial instruments to grab the opportunities for market arbitrage (purchasing and selling the same security at the same time in different markets to take advantage of a price difference between the two separate markets).

He also announced that launching short-selling and warrant by the end of the current Iranian calendar year (March 20, 2019), Iran’s basket of capital market’s classic instruments will be complete, “while we are already complete in terms of Islamic financial instruments including sukuk.”

Elsewhere in his remarks, Mohammadi referred to the noticeable growth in the number of financial entities in the country and said, “We will have 650 financial entities by the end of current [Iranian] year that can strengthen all these instruments.”

‘A turning point in developing new financial instruments’

Mahmoud-Reza Khajehnasiri, a board member of SEO, was the other speaker in the ceremony, who said that the speed of launching and operating the new instruments in the stock market of country indicates the proper group work behind it which is a turning point in development of new financial instruments.

He believes that the new financial instruments will empower the capital market and fill many gaps. “Enjoying these instruments and specialized financial entities we will bring wealth and profit”, he stressed.

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