TEHRAN- TEDPIX, the main index of Tehran Stock Exchange (TSE), gained 3,260 points on Saturday.

The index closed at 1.304 million points, as over 5.528 billion securities worth 37.095 trillion rials (about $137.3 million) were traded at the TSE.

The first market’s index rose 3,558 points, and the second market’s index increased 2,945 points.

TEDPIX rose 92,000 points (5.8 percent) to 1.301 million in the past Iranian calendar week (ended on Friday).

During the past week, the indices of Mobarakeh Steel Company, Bandar Abbas Oil Refining Company, Isfahan Oil Refinery, Iran Khodro Company, Saipa Company, and National Iranian Copper Company were the most widely followed ones.

The government has applied several new changes in the national budget bill for the next Iranian calendar year (begins on March 21) which according to experts and analysts will ensure the stock market’s stability and growth in the coming years.

Reducing taxes on production units active in the stock market, strengthening the Capital Market Development and Stabilization Fund, eliminating subsidized foreign currency allocations, and stabilizing the ownership interest of the mines are some of the measures considered in the budget bill to support the capital market.

Allocating a 20-percent tax on legal entities is considered in next year's budget bill which is less than the previous years. Reducing the taxes imposed on production units will make them more profitable and therefore their performance in the stock market will improve.

Also, the direct taxes collected from production units is expected to be injected into the Capital Market Development and Stabilization Fund in order to be used to improve and develop the market.

Based on the next year’s budget bill, no subsidized foreign currency will be allocated to special entities to import certain goods. Experts and analysts believe that this decision is going to have a very positive impact on the stock market since it will prevent rent and unrealistic pricing.

MA/MA