Mohammad Goudarzi also expounded upon the measures taken and underway by the TSE during the press conference.

He mentioned focusing on two areas of financing and digitalization of processes as two important programs of this exchange and stated: “To achieve our desired goals, we focused on two areas of financing and digitalization of Tehran Stock Exchange.”

“Digitalization of the TSE and designing systems for this objective in a way that we can meet the needs of market is one of our main targets”, the official reiterated.

“Another measure we are planning to take in line with financing is to change the financing secretariates in the provincial halls to some financing centers, in a way that some spaces will be allocated to them so that the other financing centers can come and operate and help the financing in that province”, Goudarzi further stated.

Elsewhere in his remarks, the TSE managing director said that the exchange plans to strengthen the role of financial instruments, such as futures, in the current Iranian calendar year (ends in late March).

“Although the directors tried to set up the futures contract market in the past few years, but since some platforms have not yet been able to perform the necessary confirmations for settlement and clearing, we are facing problems. Therefore, we should try to increase the number of indices”, he explained.

“We are not satisfied with the volume of transactions in this market, but it seems that with the preparation of the IT sector, we will witness the prosperity of this market and the increase in the number of indices”, the official added.

Then, Goudarzi emphasized the importance and role of indirect investment, and said, “Looking at the stock exchange transactions, we can say that 60 million shareholders are not active, so we must help the market participants to invest indirectly in the capital market.”

Stating that investing in the stock market is indirect all over the world, he said: “With the development of stock funds, condition for indirect investing has been provided in a good way.”

Goudarzi also mentioned the knowledge-based companies and said, “The entry of knowledge-based companies is an intrinsic approach for the country’s economy and will lead the flow of capital towards the companies, and with the help of the Securities and Exchange Organization (SEO), we will see these companies enter the stock market for the first time.”

Currently, 10 companies out of 50 are knowledge-based companies that will enter the stock market as soon as they are accepted, the official added.

He further announced that 386 companies are currently active in Tehran Stock Exchange, of them 176 companies are in the secondary market and the rest in the primary market.

TSE is one of the four Iranian stock exchanges, and the most important one. The other three ones are Iran Mercantile Exchange (IME), Iran Energy Exchange (IRENEX), and Iran’s over-the-counter (OTC) market, known as Iran Fara Bourse (IFB).

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As reported, over 6.966 billion securities worth 47.296 trillion rials (about $1.126 billion) were traded at the TSE on Tuesday.

The first market’s index gained 9,725 points, and the second market’s index rose 45,844 points.

TEDPIX had risen 5,000 points in the past Iranian calendar week.

During the past week, the indices of Civil Servants Pension Fund (CSPF), Social Security Investment Company, and Barekat Pharmaceutical Group were the most widely followed indices.

A capital market analyst says that TEDPIX is going to improve in the second half of the current Iranian calendar month (ends on August 22).

Mehdi Bayat-Manesh noted that considering the current trend of capital inflow into the market TEDPIX is expected to rise in the current month.

“It is expected that the upward trend of the market in the last one month, when the stock index rose from 1.4 million points to 1.8 million points, will continue, and it is also likely that according to the forecasts, the stock index will once again enter the 1.4 million-point channel by the end of the current month,” he said.

According to Bayat-Manesh, the government policies for supporting the upward trend of the market should continue in the coming months in order to ensure this upward trend.

“It is also better for the managers of Iran’s Securities and Exchange Organization (SEO) to also take the necessary measures for supporting the market so that the stock market index can once again reach more than two million points, which takes at least a few months to happen.”

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The MOU was signed by the managing directors of the two countries’ stock exchanges in a conference on Iran-Tajikistan trade relations which was held virtually on Tuesday, IRNA reported.

Based on the signed MOU, the stock exchanges of the two countries will exchange experiences and develop cooperation in line with the regulations of the two sides’ capital markets. This will facilitate investment opportunities and the participation of shareholders and traders of the two countries.

Organized by the Tehran Chamber of Commerce, Industries, Mines and Agriculture (TCCIMA), the Iran-Tajikistan business conference was aimed at acquainting the businessmen and private sectors of the two countries with mutual capacities and opportunities for joint cooperation.

The event was attended by the ambassadors of Iran and Tajikistan, along with economic representatives and private sector activists of the two countries.

Hesameddin Hallaj, TCCIMA deputy head for international affairs, Seyedeh Fatemeh Moghimi, TCCIMA board member, Tajikistan Ambassador to Tehran Zohidi Nizomiddin Shamsiddinzoda, Mohammad Taghi Saberi, ambassador of the Islamic Republic of Iran to Tajikistan, and Jamshid Juma Khanzadeh, chairman of the Tajik Chamber of Commerce and Industry, were also among the attendees of the conference.

TSE had previously inked cooperation MOUs with the stock exchanges of other Asian countries including Seoul Stock Exchange and Shanghai Stock Exchange (SSE).

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Over 7.187 billion securities worth 58.295 trillion rials (about $1.387 billion) were traded at the TSE on Wednesday.

The first market’s index rose 4,568 points, and the second market’s index increased 22,590 points.

Mohammad-Ali Dehqan Dehnavi, the head of Iran’s Securities and Exchange Organization (SEO), has announced that the organization’s advisory council has proposed two new programs for supporting the stock market in the current Iranian calendar year (started on March 21).

The details of the mentioned programs dubbed “capital market policy package to support production and eliminate obstacles” and “the plan to improve the position and performance of the capital market” were presented in a meeting between Dehqan Dehnavi and the members of the SEO Advisory Council.

“The capital market has witnessed great changes in the past two years and has grown significantly in terms of size, the volume of activity, and presence of people. These rapid developments have changed some of the equations [in the market],” Dehnavi said following the mentioned meeting.

He emphasized that the structure and facilities of the stock market should be reviewed and modified based on the size and volume of today’s market and the issues it faces.

“New capacities should be created not only in the structure of the stock exchange organization [SEO] but also in all sectors of the market in order to adequately respond to the existing needs,” the official said.

According to the official, the first of the above-mentioned programs, namely “capital market policy package to support production and eliminate obstacles” has been prepared by the SEO Research Center to tackle the issues that the stock market is facing in supporting domestic production.

“It provides solutions to more than 40 to 50 capital market challenges and issues in this regard,” he noted.

In the second program, the necessity and ways of improving the position and performance of the capital market are discussed and the raised issues and problems will be addressed through specialized working groups with the presence of experts, analysts, capital market activists and managers from different sectors.

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The index closed at 1.213 million points on Wednesday (the last working day of the week).

TEDPIX returned to the uptrend after a long period of fluctuation and continuation of the downward trend

During the past week, the indices of Iran Khodro Company, Saipa Company, Esfahan Oil Refining Company, Kourosh Food Industry Company, and Zarmakarun Industrial Company were the most widely followed indices.

Over the past two years, a number of factors affecting Iranian economy have created a new status in the country’s capital market, in a way that this market experienced such a growth in the past Iranian calendar year 1399 (ended on March 20) that was never seen in its history of more than 50 years.

The fall in oil prices and the reimposition of the U.S. unilateral sanctions on Iran’s economy led the Iranian government to turn to the capital market for funding.

On one hand, the government tried to prevent liquidity from going to the markets such as gold and foreign currency, and on the other hand, considering the recent events in the Iranian economy, it also looks at this market with a view of financing, which resulted in the prosperity of this market.

The rising rate of inflation and also that of foreign currency exchange have been also mentioned as two major factors led to the flourishment of the capital market.

In addition to inflation, which has been one of the main drivers of capital market growth in the past two years, another market driver is changing the attitude of government officials towards the capital market and trying to transfer the shares of 18 large state-owned companies through exchange-traded funds (ETFs).

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Over 10.375 billion securities worth 67.805 trillion rials (about $1.614 billion) were traded at the TSE on Wednesday.

The first market’s index rose 24,090 points, and the second market’s index rose 35,716 points.

Mohammad-Ali Dehqan Dehnavi, the head of Iran’s Securities and Exchange Organization (SEO), has announced that the organization’s advisory council has proposed two new programs for supporting the stock market in the current Iranian calendar year (started on March 21).

The details of the mentioned programs dubbed “capital market policy package to support production and eliminate obstacles” and “the plan to improve the position and performance of the capital market” were presented in a meeting between Dehqan Dehnavi and the members of the SEO Advisory Council.

“The capital market has witnessed great changes in the past two years and has grown significantly in terms of size, the volume of activity, and presence of people. These rapid developments have changed some of the equations [in the market],” Dehnavi said following the mentioned meeting.

He emphasized that the structure and facilities of the stock market should be reviewed and modified based on the size and volume of today’s market and the issues it faces.

“New capacities should be created not only in the structure of the stock exchange organization [SEO] but also in all sectors of the market in order to adequately respond to the existing needs,” the official said.

According to the official, the first of the above-mentioned programs, namely “capital market policy package to support production and eliminate obstacles” has been prepared by the SEO Research Center to tackle the issues that the stock market is facing in supporting domestic production.

“It provides solutions to more than 40 to 50 capital market challenges and issues in this regard,” he noted.

In the second program, the necessity and ways of improving the position and performance of the capital market are discussed and the raised issues and problems will be addressed through specialized working groups with the presence of experts, analysts, capital market activists and managers from different sectors.

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According to the TSE office of Public Relations and International Affairs, the decision was announced during the 32nd meeting of FEAS General Assembly which was held online on Tuesday due to the restrictions over the coronavirus pandemic.

As reported, at this meeting, financial statements for the fiscal year 2020 were approved and the yearlong performance of the FEAS secretariat and committees were reviewed. The roadmap for 2021 was also evaluated by board members.

At the end of the meeting, the attendees voted to select the members of FEAS Board of Directors for a two-year term, and the stock exchanges of Egypt, Kazakhstan, Athens, Sydney, Amman, Muscat, Tehran, Armenia, and Iraq were selected as the main members and Egypt and the European Bank for Reconstruction and Development were selected affiliates.

It should be noted that Iran Fara Bourse, stock exchanges of Cyprus, Tashkent, and Palestine along with Armenian Deposits were also selected as members of the Board of Directors of FEAS Audit Committee for two years.

TSE had been elected as the main member of the FEAS Board of Directors in the previous election which took place in 2018.

The Tehran Stock Exchange is Iran’s largest stock exchange, which first opened in 1967.

TSE, which is one of the founders of the Federation of Euro-Asian Stock Exchanges, has been one of the world’s best performing stock exchanges in recent years.

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As reported by the IME’s Public Relations and International Affairs Department, in the past week, 824,288 tons of commodities with a total trading value of $384 million were traded at the exchange, showing also a 31-percent growth in terms of the volume of traded commodities.

The exchange sold on its metal and mineral trading floor 438,651 tons of commodities worth more than $216 million.

Commodities traded on this floor included 185,564 tons of steel, 4,720 tons of copper, 8,850 tons of aluminum, 250 tons of molybdenum concentrate, 400 tons of metallurgical coke, 12 tons of precious metal concentrate, 585 tons of zinc ingots, 194,270 tons of cement, 11 kg of gold bars, 9,000 tons of sponge iron and 35,000 tons of iron ore pellets.

Moreover, the IME saw trade of 383,664 tons of commodities on its oil and petrochemical trading floor valued at nearly $167 million.

Based on this report, the IME’s customers purchased on this floor, 85,000 tons of vacuum bottom, 154,368 tons of bitumen, 66,580 tons of polymeric products, 31,155 tons of chemicals, 38,000 tons of lube cut, 110 tons of argon, 1,270 tons of sulfur, 455 tons of insulation, 1,976 tons of PDA TAR and 4,750 tons of base oil & slack wax,

Also, the exchange played host to trading of 1,973 tons of commodities on its side market.

As previously reported, the value of trades at Iran Mercantile Exchange rose 16 percent in the past Iranian calendar month (ended on May 21).

As reported by the IME’s Public Relations and International Affairs Department, 2.925 million tons of commodities valued at $1.828 billion were traded at the exchange in the previous month, indicating also a six-percent rise in terms of weight.

The IME witnessed trades of 1.464 million tons of commodities worth more than $1.044 billion on its mineral and industrial trading floor.

On this floor the exchange traded 1.189 million tons of steel, 12,780 tons of copper, 480 tons of molybdenum concentrate, 48 tons of precious metals concentrate, 11,690 tons of aluminum, 239,000 tons of iron ore, 1,000 tons of zinc, 400 tons of coke, 10,000 tons of sponge iron and 250 tons of lead.

The other trading floor of the exchange was the oil and petrochemical on both domestic and export rings of which customers purchased more than 1.449 million tons of commodities valued at almost $770 million.

Commodities traded on this floor were 412,630 tons of bitumen, 238,686 tons of polymeric products, 155,372 tons of chemicals, 12,238 tons of oil, 490,300 tons of vacuum bottom, 4,450 tons of sulfur, 350 tons of argon, 150 tons of insulation and 132,500 tons of lube cut.

Moreover, the IME saw trade of 11,505 tons of commodities on its side market within this month.

The value of trades at Iran Mercantile Exchange in the previous Iranian calendar year (ended on March 20) rose 108 percent compared to the preceding year.

During the past year, about 3.5 quadrillion rials (about $83.5 billion) worth of commodities were traded at the mentioned market.

In the past year, several new records were achieved in terms of the volume and value of transactions in the mentioned market’s various floors including the industrial, petroleum, and petrochemical floors.

IME is one of the four major stock markets of Iran, the other three markets are Tehran Stock Exchange (TSE), Iran’s over-the-counter (OTC) market known also as Iran Fara Bourse (IFB), and Iran Energy Exchange (IRENEX).

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The index closed at 1.151 million points on Wednesday (the last working day of the week).

During the past week, the indices of Iran Khodro Company, Saipa Company, Isfahan Oil Refining Company, Barekat Pharmaceutical Group (BPG), and Zarmakarun Industrial Company were the most widely followed indices.

Iranian market analyst Hassan Balazadeh has proposed three solutions for improving the trend of the stock market and resolving some of the problems that the market is currently wrestling with.

Revising the regulations regarding the public float stock, determining ceiling and limitation for the Initial Public Offerings (IPOs), and finally establishing a support fund for certain stocks were the solutions that Balazadeh has proposed.

According to Balazadeh, one of the problems that can be quickly addressed in the current situation is the issue of float stock. Based on the capital market law, companies in this market must offer at least 10 percent of their shares to public investors. In recent years, the increase in companies’ capital from revaluation has made them bigger and following this growth most companies need more liquidity to back them up.

So, the regulations in this regard must change in a way to oblige such companies to offer more of their shares in the market.

Secondly, the analyst offered that for those companies who are going to offer their shares for the first time, a ceiling must be set for the price of the shares and if they exceed the set criteria and the stock falls in the future the owner company should be obliged to refund the shareholders paid money.

Regarding the support fund, Balazadeh said this fund can be set up with a part of the dividend of the companies in the general assembly and with the agreement of the shareholders. This way, shareholders can agree to allocate a portion of their dividend to the mentioned fund to support the stock when needed.

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Rouzbeh Shariati believes reaching a possible agreement on the nuclear deal, the stability of the national currency, as well as the less attractive situation of the parallel markets are the important factors that would contribute to the improvement of the capital market.

“Prospects of a political agreement and positive signals from Vienna have reduced the foreign currency exchange rates in the domestic market. The stock market, however, had already anticipated this agreement. In fact, the anticipation of the agreement has already caused the correction of prices in the capital market,” the analyst said.

Unprecedented fluctuations in the Iranian stock market over the past few months have led shareholders, experts, and scholars to call for the government to increase its support for the market, some shareholders want the government to guarantee the return of their stocks, some believe providing infrastructure is the best way to help this market.

Following the rising concerns over the market conditions, in early April, the Government Economic Coordination Headquarters, in its 216th meeting, approved some new directives for regulating the stock market.

Also in late April, senior officials including the parliament speaker Mohammad Baqer Qalibaf, the Governor of the Central Bank of Iran (CBI) Abdolnaser Hemmati, Finance, and Economic Affairs Minister Farhad Dejpasand, and the Head of Iran’s Securities and Exchange Organization (SEO) Mohammad-Ali Dehqan Dehnavi gathered at the country’s parliament to explore ways for supporting the stock market and resolving its current issues.

After the mentioned meetings, SEO unveiled a new directive package dubbed “7+3” which include allocation of one percent of the National Development Fund (NDF) resources to the stock market stabilization fund, lifting the ban on capital market financial institutions to use banking facilities, and granting five-year residency to foreign investors who buy shares in the Iranian capital market.

The above-mentioned directives have been implemented in the capital market as of April 27th, according to Dehqan Dehnavi.

In the 216th meeting of the Government Economic Coordination Headquarters, President Hassan Rouhani presented a report on the government’s supportive measures for the stock market, saying: “This year, which has been named the year of supporting production and eliminating obstacles, the government is trying to remove obstacles to the growth of the capital market and will try to encourage people to enter this market with the necessary training and arrangements.”

In its latest supportive decision, the government has also approved to inject 240 trillion rials (about $5.7 billion) of resources into the market in the form of bonds which most experts evaluate as a positive measure. It is said that these funds are gradually injected into the market and help increase the liquidity until new resources enter the market.

It has been said that these resources that enter the market will also motivate shareholders, and therefore real investors will be encouraged to invest in the market.

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