TEDPIX drops 38,700 points on Tuesday

October 12, 2021 - 15:37

TEHRAN- TEDPIX, the main index of Tehran Stock Exchange (TSE), lost 38,772 points to 1.418 million on Tuesday.

As reported, over 5.965 billion securities worth 48.875 trillion rials (about $1.163 billion) were traded at the TSE.

The first market’s index fell 30,996 points, and the second market’s index dropped 70,033 points.

TEDPIX rose 3.5 percent in the past Iranian calendar week (ended on Friday).

During the past week, the indices of Social Security Investment Company, Bandar Abbas Refinery, Iran Khodro Company, Sepid Makian Company, and Barekat Pharmaceutical Group were the most widely followed ones.

A capital market analyst has said the Iranian stock market is expected to be stable in the third quarter of the current Iranian calendar year (September 23-December 21), IRNA reported.

“We expect to see a steady trend in market transactions in [the Iranian calendar months of] Aban and Azar (autumn months), and I suggest shareholders invest in leading industries,” Salman Nasirzadeh said.

He pointed to the current risks of the stock exchange and added: "The stock market in the current situation, along with its positive movements, is associated with risks, now the most important risk that may be imposed on the market is possible macroeconomic decisions."

He emphasized the measures that can help the stock market to follow an uptrend and said: "By creating stability in the regulations, transparency of information and increasing the initial public offering in the market, it is possible to change the trend of the market.”

Nasirzadeh stated that with proper knowledge of investing in stock exchange transactions, the capital market can be considered as a positive market in the medium- and long term.

Iran’s new Minister of Finance and Economic Affairs Ehsan Khandouzi has underlined the capital market as one the major priorities of his ministry during his tenure, outlining the programs for improving this market.

As ISNA reported, increasing the role of the capital market in financing production companies and projects, diversifying financial instruments in the capital market, eliminating unnecessary regulations and barriers, facilitating the entry of companies into the stock market, reducing the cost of issuing bonds by facilitating relevant regulations, canceling monopolies and facilitating licensing for stock market-related services such as portfolio management, marketing and brokerage, reforming corporate governance to manage conflict of interest between major and minor stakeholders and finally providing incentives for people to invest indirectly in the capital market have been mentioned as the major programs that the economy ministry is going to pursue in order to improve the capital market.

According to Khandouzi, the stock market is one of the most important pillars of the economy as it will play a significant role in financing government projects and supporting economic growth.

The minister had previously mentioned financing the government and ensuring economic growth as the main priorities of the Economy Ministry during his tenure.