Tehran Stock Exchange; a 27% rise!
– In an interview, the head of the Securities and Exchange Organization of Iran enumerated the reasons for the 27% growth of the Tehran Stock Exchange major index (TEDPIX) in the current year. Referring to the whole trading value (4 exchange markets) exceeding IRR 2,100,000 (cUSD 47 bn) bn, he firstly mentioned President Rouhani’s administration’s economic policies to lower interest rate on banking deposits, which also dragged bonds yield rate and therefore, financing costs for companies down as well. Another factor was companies’ profitability growth, mostly due to facilities offered by the government and global commodity prices soar. A part of this growth was due to the USD/IRR increase, which raised export-oriented companies’ income. Applying changes to the halting-reopening mechanism of the market to accelerate the whole process played another crucial role by increasing the market liquidity. To all these, the reduction in trading commission must also be noted, which will show its positive effect in the long run.