TSE’s main index drops 865 points on Monday

December 6, 2021 - 15:56

TEHRAN- TEDPIX, the main index of Tehran Stock Exchange (TSE), lost 865 points to 1.342 million on Monday, IRNA reported.

As reported, over 4.849 billion securities worth 28.774 trillion rials (about $685.095 million) were traded at the TSE on the mentioned day.

The first market’s index lost 2,092 points, while the second market’s index rose 2,849 points.

Head of Iran’s Securities and Exchange Organization (SEO) has recently said the government is following new strategies to avoid pre-ordered pricing in the stock market in the long term.

“The government's policy, in the long run, is to avoid pre-ordered pricing. This policy has been repeatedly stressed by the president and the government's economic team and has been placed on the government's agenda,” Majid Eshqi said on November 14.

According to the official, supply and demand should be the only determining factor for setting the price for a share.

“We need to move away from imperative policies so that companies can be profitable in the long-term,” he said.

Also, in a meeting with the representatives of over 30 major companies active in the capital market, on November 1, to exchange ideas for resolving issues and developing the economy, Finance and Economic Affairs Minister Ehsan Khandouzi said his ministry plans to make the economy more predictable and eliminate pricing systems that are harmful to the capital market and the stock exchange industry.

The official noted that the government will follow new strategies to compensate for the budget deficit by making government assets more productive and also by selling surplus properties.

“The task of the Economy Ministry and the Securities and Exchange Organization is to develop tools and institutions in order to create a transparent, efficient, and predictable market,” Khandouzi stated.

Meanwhile on November 22, The SEO head said facilitation of the activities of stock market institutions like brokers will lead to the development of the capital market.

“Facilitating the establishment of brokerage firms and the ease of licensing issuance for financial institutions, as well as the strict supervision of the SEO over the activities of such financial institutions, are the basis for the development of the capital market,” Eshqi stated.

Noting that the Ministry of Finance and Economic Affairs has put the support for the capital market on the agenda, Eshqi added: “In order to support the capital market, Economy Minister Ehsan Khandouzi has put issues such as the development of institutions, the removal of monopolies, the use of new tools, and the strengthening of the primary market on the agenda of this ministry.”

“Elimination of monopolies and facilitating the issuance of licenses for establishment of financial institutions is one of the most important missions of the Securities and Exchange Organization, however this goal has made the SEO more precise in performing its supervisory duties to prevent any possible problems for shareholders,” the official explained.

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