Iran capital market comes out of recession
Tehran, Iran, Nov. 19
By Milad Fashtami - Trend:
Ali Salehabadi, chairman of the Iranian Securities and Exchange Organization, said the country's capital market has snapped out of recession.
"Currently some 40-50 billion rials (some $1.25-1.5 million based on the exchange rate of US dollar at the free market) worth of transactions is being done each day which is a good sign," he explained, Iran's Mehr News Agency reported on Nov. 19.
"The main index is also on the rise, which shows that the situation in the exchange market is good," he said.
Salehabadi said on Oct. 31 that some 200 trillion rials (some $6.25 billion based on the exchange rate of US dollar at the free market) have been injected to the country' stock market from the begging of the current Iranian calendar year (March 20) until the end of October.
Iran's SHANA news agency reported on Oct. 29 that Tehran Stock Exchange market capitalization amounted to $105 billion at the end of the past Iranian calendar month of Mehr (October 22).
The figure showed a 5 percent fall compared to the same period in the previous year.
USD exchange rate in Iran is currently about 32,000 rials.
Chemical companies group topped the market capitalization list, with $24 billion in value, followed by financial institutions group and metals groups, with $11.5 billion and $11 billion in value, respectively.
Iranian Minister of Economic Affairs and Finance Ali Tayebnia has ordered insurance companies and major banks to support the country's capital market.
Bank Melli Iran , Bank Mellat, Bank Sepah, and Tejarat Bank are supposed to inject some 40 trillion rials (some $1.33 billion based on the exchange rate of USD at the free market) to the Capital Market Development Fund in near future.
Founded in 1967, the Tehran Stock Exchange has been one of the world's best performing stock markets in recent years and has ranked as the best bourse index in Europe, Africa and Middle East in 2010 in terms of performance of the main index.
The TSE's annual growth rate of main indices was also ranked as the second best among all members of the World Federation of Exchanges.
The WFE is the association of 52 regulated exchanges around the world, which aims to develop and promote standards in markets.