TEDPIX at about 200,000 points

September 30, 2018 - 18:13

TEHRAN- Tehran Stock Exchange (TSE)’s main index (TEDPIX) gained 7,697 points to stand at 195,104 points on Sunday, registering a new record again, IRNA reported.

IFX, the main index of Iran's over-the-counter (OTC) market known also as Iran Fara Bourse (IFB), rose 77 points to 2,228 on the same day, as 1.102 billion securities worth 6.87 trillion rials (about $163.5 million) were traded.

The rising trend of TEDPIX began on June 13, which was named ‘Golden Wednesday of Stock Market’, when TEDPIX gained 2,767 points to stand at 99.146 points. Then on June 17, players in Iran’s capital market witnessed a historic record in growth of TEDPIX which gained 3,306 points to hit 102,452 points, something unprecedented in the 50-year history of the country’s stock market.

Capital market indices have generally experienced a positive trend since then.

This happened under the conditions that domestic markets are awaiting the new wave of U.S.-led sanctions in November, following by the first round of sanctions posed in early August.

The growth can be explained regarding the dominant recession on other domestic markets, which has guided a big sum of liquidity from other markets such as auto, foreign currency, housing and coin to the capital market.

The government’s recent focus on supporting and expanding the capital market, can also explain the recent jump in indices.

The low tax rate, liquidity transparency, and other provided instruments by the government has presently given the investors in the capital market the confidence about low liquidity risk in the stock market and has led to attraction of a large volume of capital and expansion of trade and cooperation among private companies.