TEDPIX gains 16,000 points on Tuesday

December 21, 2021 - 17:32

TEHRAN- TEDPIX, the main index of Tehran Stock Exchange (TSE), rose 16,925 points to 1.318 million on Tuesday.

As reported, over 4.397 billion securities worth 33.46 trillion rials (about $115.379 million) were traded at the TSE.

The first market’s index rose 14,870 points and the second market’s index gained 26,318 points.

TEDPIX lost 56,000 points (4.3 percent) to 1.293 million in the past Iranian calendar week (ended on Friday).

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

Last week, Head of Iran’s Securities and Exchange Organization (SEO) Majid Eshqi said a 10-part support package has been prepared for supporting the stock market and Finance and Economic Affairs Minister Ehsan Khandouzi is going to unveil the package soon, IRNA reported.

“The 10-article package for supporting the capital market has been approved by the Government Economic Coordination Headquarters and the details of the proposals will be announced by Minister of Finance and Economic Affairs,” Eshqi said.

Based on the mentioned package, the government is going to prevent a sharp rise in the costs of the industrial production sectors and will also help Capital Market Development and Stabilization Fund, according to the official.

In addition to the specific budget line provided in the next fiscal year budget bill, the fund is expected to be provided a much bigger funding, approximately 10 times the allocated figure in the national budget bill, through the transfer of shares and other financing methods so that it can do its job, Eshqi explained.

As stated by a capital market analyst, the national budget bill for the next Iranian calendar year (begins on March 21, 2022) indicates that the government has a more positive view on the market for the upcoming year.

According to Peyman Hadadi, the allocation of a separate budget for the Capital Market Development and Stabilization Fund shows that the government is taking the necessary measures to provide stronger support for the market and to ensure its growth in the future.

“The allocation of a budget line for the Capital Market Development and Stabilization Fund is considered one of the most important points of the [Iranian calendar year] 1401 budget bill,” Hadadi said.

The expert also pointed to the imposition of tax on rival markets including the housing market as another important and influential change in the next budget bill and said: “Taxation of luxury cars and expensive housing, along with taxation of bank deposits of legal entities, is also one of the important issues that should be appreciated about the budget bill.”

He also mentioned the elimination of subsidized foreign currency allocations and noted that this would create huge changes in the market and will be the starting point for some positive progress in some industries active in the market.

The elimination of subsidies on foreign currency is not only beneficial for the country's macro-economy but also has a positive effect on the capital market transactions, the analyst said.

MA/MA

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