TEDPIX gains 708 points on Tuesday

September 28, 2021 - 15:46

TEHRAN- After several days of drops, TEDPIX, the main index of Tehran Stock Exchange (TSE), rose just 708 points to 1.425 million on Tuesday.

Over 5.749 billion securities worth 50.456 trillion rials (about $1.2 billion) were traded at the TSE on Tuesday.

The first market’s index rose 3,140 points, while the second market’s index fell 6,718 points.

TEDPIX fell 7.3 percent in the past Iranian calendar week (ended on Friday).

During the past week, the indices of Social Security Investment Company, Iran Khodro Company, Saipa Company, Sepid Makian Company, Mobarakeh Steel Company, and Barekat Pharmaceutical Group were the most widely followed ones.

It’s over two years that stock market in Iran has been playing an outstanding role in the attraction of the people’s investment.

Iranian people, who used to invest their money in some traditional ways such as buying gold, or deposit money in the banks, have taken a new approach for investment over the past two years, as they have been investing more and more in the stock market.

The rising number of new shareholders in Tehran Stock Exchange (TSE), which is Iran’s major stock exchange, is an indication of this new approach.

Different factors have created such condition, among them it could be referred to the efforts made by the stock market to attract people’s more investment through laying the proper ground, for example via introducing new financial instruments, and also by making people more acquainted with this market.

The other factor is the government’s policy and new approach toward the stock market, and putting emphasis on this market’s role in funding and economic growth.

The status of the parallel markets such as forex, housing, and gold markets has also made stock market a more attractive place for the people to invest in.

Meanwhile, the government’s policy of lowering the interest rate of the bank deposits has redirected a huge amount of people’s investment to the stock market.

Iran’s new Minister of Finance and Economic Affairs Ehsan Khandouzi has previously underlined the capital market as one of the major priorities of his ministry during his tenure.

Increasing the role of the capital market in financing production companies and projects, diversifying financial instruments in the capital market, eliminating unnecessary regulations and barriers, facilitating the entry of companies into the stock market, reducing the cost of issuing bonds by facilitating relevant regulations, canceling monopolies and facilitating licensing for stock market-related services such as portfolio management, marketing, and brokerage, reforming corporate governance to manage conflict of interest between major and minor stakeholders and finally providing incentives for people to invest indirectly in the capital market have been mentioned as the major programs that the economy ministry is going to pursue in order to improve the capital market.

According to Khandouzi, the stock market is one of the most important pillars of the economy as it will play a significant role in financing government projects and supporting economic growth.

MA/MA

Leave a Comment

4 + 10 =