TSE witnesses 3.5% growth of its main index in a week

May 15, 2020 - 14:34

TEHRAN- TEDPIX, then main index of Tehran Stock Exchange (TSE), gained 39,77 points to 1.017 million during the past Iranian calendar week (ended on Friday), IRNA reported.

As reported, Bank Mellat, Isfahan Oil Refinery, National Iranian Copper Industry Company, Iran Khodro Investment Development Company, Kharazmi Investment Group, Bank Tejarat, and Mobarakeh Steel Company were the biggest contributors to the index’s gain in the past week.

On May 9, TEDPIX hit the record high of one million points. The index’s daily jump was also unprecedented as it gained 42,372 points to stand at 1.2 million points.

Securities worth 101.018 trillion rials (about $2.405 billion) were traded through one million deals at the TSE.

Mobarakeh Steel Company, Persian Gulf Petrochemical Industry Company, Pars Petrochemical Company, and National Iranian Copper Industry were the biggest contributors to the index jump.

While the past Iranian calendar year (ended on March 19) was full of success for the TSE, the market is also preserving its successful performance in the current year, and the noticeable point in this due is that the other economic sectors are experiencing some declining trend due to the coronavirus pandemic.

We have been witnessing new record highs continuously posted by the exchange since the year start, and climbing to the peak of one million points, something almost unbelievable just some time ago, has already come true.

Also as another fruitful step, on May 2, TSE, which is the main stock exchange of Iran, listed the first exchange-traded fund (ETF) from a series of three ETFs, through them shares of some state-owned organizations and companies are planned to be offered.

An exchange-traded fund (ETF) is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds and generally operates with an arbitrage mechanism designed to keep it trading close to its net asset value, although deviations can occasionally occur.

The three ETFs are planned to offer 550 trillion rials (about $13 billion) worth of the governmental stakes, of which 165 trillion rials (about $3.9 billion) is to be offered via the first fund.

The first ETF, established by the Ministry of Finance and Economic Affairs, comprises government shares in three banks, including Bank Mellat, Tejarat Bank, and Bank Saderat, as well as the shares of two insurance companies, i.e. Iranian Reinsurance Company and Alborz Company.

MA/MA

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