Azerbaijan, Baku, Nov.20/ Trend F.Milad/
The Tehran Stock Exchange (TSE) and the Karachi Stock Exchange (KSE) have inked a memorandum of understanding to boost bilateral ties.
The managing directors of TSE and KSE, Hassan Qalibaf-Asl and Nadeem Naqvi, have signed the MoU, the Fars News Agency reported.
The two sides will study possible ways to exchange knowledge.
The TSE is Iran's largest stock exchange, which first opened in 1967. The TSE is based in Tehran. As of May 2012, 339 companies with a combined market capitalization of US$104.21 billion were listed on TSE.
The TSE, which is a founding member of the Federation of Euro-Asian Stock Exchanges, has been one of the world's best performing stock exchanges in 2002-2011. The TSE is an emerging or "frontier" market.
The most important advantage that Iran's capital market has in comparison with other regional markets is that there are 37 industries directly involved in it. Industries such as the automotive, telecommunications, agriculture, petrochemical, mining, steel iron, copper, banking and insurance, financial mediation and others trade shares at the stock market, which makes it unique in the Middle East.
The second advantage is that most of the state-owned firms are being privatized under the general policies of article 44 in the Iranian constitution.
Under the circumstances, people are allowed to buy the shares of newly-privatized firms. Iran is among the few major economies that has maintained positive economic growth despite the 2008 global financial crisis and international sanctions.
The Karachi Stock Exchange or KSE is a stock exchange located in Karachi, Sindh, Pakistan. It is Pakistan's largest and oldest stock exchange, with many Pakistani as well as overseas listings.
Founded in 1947, Karachi Stock Exchange (KSE) is the biggest and most liquid exchange in Pakistan. It was declared the "Best Performing Stock Market of the World for the year 2002".
A total of 654 companies were listed on December 8, 2009 with a market capitalization of Rs. 8.561 trillion (US$ 120.5 billion) having listed capital of Rs. 2805.873 billion (US$ 40.615 billion).
The KSE-100 Index closed at 11,967 on May 16, 2011. Total market capitalization of the KSE reached Rs 2.95 trillion (US$ 35 billion approximately) on July 30, 2011.
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