TEHRAN- TEDPIX, the main index of Tehran Stock Exchange (TSE), gained 44,782 points to 1.328 million on Saturday.

As reported, over 8.714 billion securities worth 51.077 trillion rials (about $176 million) were traded at the TSE.

The first market’s index rose 40,834 points and the second market’s index gained 65,352 points.

TEDPIX gained 43,000 points to 1.283 million in the past Iranian calendar week (ended on Friday).

TSE is one of the four Iranian stock exchanges, and the most important one. The other three ones are Iran Mercantile Exchange (IME), Iran Energy Exchange (IRENEX), and Iran’s over-the-counter (OTC) market, known as Iran Fara Bourse (IFB).

Unprecedented fluctuations in the Iranian stock market over the past few months had led shareholders, experts, and scholars to call for the government to increase its support for the market.

Following the rising concerns over the market conditions, in early April, the Government Economic Coordination Headquarters, in its 216th meeting, approved some new directives for regulating the stock market.

Also, as the condition deteriorated and TEDPIX experienced continuous drops, Stock and Exchange Organization (SEO) unveiled a comprehensive support package to encourage activities in the capital market as shareholders were getting reluctant to invest in the market.

As announced by the SEO Office of Public Relations, one of the major measures considered in this 10-section package is the insurance of shareholders’ capital and dividends over the next year.

The comprehensive support package of the capital market, which was designed last week and has been reviewed by the country's economic authorities, was put in effect on October 29.

Insuring the shares of real entities up to one billion rials (about $3,450) per person, issuing subordinated warrants on shares of fixed income funds up to 400 trillion rials (about $1.38 billion), injecting new resources into the market by sovereign funds to buy shares, depositing up to 50 trillion rials (about $172 million) of the resources approved in the national budget bill for the Capital Market Development and Stabilization Fund, as well as direct and continuous coordination, supervision and monitoring of the legal entities active in the capital market, including companies and semi-governmental financial institutions, pension funds and military institutions are among the measures considered in the mentioned support package.

As the result of the SEO’s support package, TEDPIX, which was experiencing drops day after day, has returned to a climbing status. 

This status brings the hope that the stock market will return to its previous prosperity condition soon, given that on Tuesday, SEO Head Majid Eshqi said that the SEO does not limit its support to the 10-section package.

“In order to increase the effectiveness of the support measures, we intend to submit a multi-section proposal to the economic headquarters of the government and we are trying to obtain resolutions in order to solve the major concerns of the stock market”, the official added.

MA/MA