Annual review: Tehran Stock Exchange grew despite global recession

Baku, Azerbaijan, March 20

By Farhad Daneshvar - Trend:

As most of stock markets in the world have been in downtrend, the Tehran Stock Exchange (TSE) indicated 28 percent growth during the last Iranian fiscal year (starting 21 March 2015).

The traders in the Tehran Stock Exchange celebrated the new Iranian calendar year on March 20, while the TSE saw strong performances in its shares in the last week of the calendar year, 1394. The TSE main index rose by 2.4% closing at 80,219 points in its last week in 1394.

Given the fact that Iran's economy is heavily dependent on oil incomes and in a condition that the global market has experienced a sharp decline in oil prices, the dramatic surge in the TSE seems surprising to many.

Alireza Kadivar, a financial analyst, considers the implementation of the Joint Comprehensive Plan of Action (JCPOA/nuclear deal) and its psychological impacts on the market's traders as the most important reasons for the upward trend in the TSE.

The TSE main index jumped 25 percent in January when international sanctions against the Islamic republic were lifted as a result of the implementation of the nuclear deal.

Kadivar also describes a decision by Iranian bankers to cut the interest rates on banking deposits as the second reason behind the surge in the TSE.

Back in February, Iranian bankers agreed to cut the annual interest rate by two percent, dropping from 20 to 18 percent. The bankers also decided to decrease the daily interest rate to below 10 percent.

Following the political and economic developments, the automotive, IT and transportation & logistics sectors experienced the highest growth over the last Iranian year.

However, the rubber & plastics, ceramic & tiles and cement sectors demonstrated a weak performance in the mentioned period.

The surge in automotive sector came following the recent deals clinched between Iranian and international carmakers.

One of the first post-sanctions contracts to be signed between an Iranian and a foreign company was a contract between major Iranian car manufacturer Iran-Khodro and the French Peugeot. The deal envisions the production of three models of Peugeot in Iran through 50-50 venture.

Mercedes-Benz, a multinational division of the German manufacturer Daimler AG, as well as France's Renault are also among those international carmakers eyeing Iran business.

With the removal of sanctions, in addition to the leading car makers, enormous foreign delegations planning to reap fat profits from Iran's untapped market have visited Tehran signing a number of agreements.

In the new Iranian year, the President Hassan Rouhani's administration will put efforts into luring billions of foreign investment for renewing the country's aging industry which could be considered as a strong sign indicating that the TSE will continue to surge in the current year.

Farhad Daneshvar is Trend Agency's staff journalist, follow him on Twitter: @Farhad_Danesh

Iran urges US to return JCPOA
Iran urges US to return JCPOA
Iran to commit to JCPOA obligations - if Europe, US return - FM Zarif
Iran to commit to JCPOA obligations - if Europe, US return - FM Zarif
Iran may cancel additional protocol on nuclear deal -  Foreign Policy Commission
Iran may cancel additional protocol on nuclear deal - Foreign Policy Commission
Loading Bars
Latest
Azerbaijan completes repair and construction work on roads of Samukh district
Bahar Azadi gold coin price rebounds in Iran
Iranian Energy Exchange announces products to be on sale on January 25
Weekly review of events in agricultural sector of Azerbaijan
Khazar Consortium opens tender for purchase of cartridges, toners
Georgian exports of knitwear to Turkey decreases
Turkmenistan’s State Concern to sign contract with Chinese company for drilling pipes purchase
Israeli embassy welcomes scheduled resumption of flights to Georgia
Bazargan border reopened after unprecedented snow
Cobalt becomes most produced car in Uzbekistan last year
Turkey registers more than 5 200 new coronavirus cases
Mexican authorities recover 19 bodies, some shot and burned, in remote area
Israel bans international flights to curb coronavirus spread
Bulk of construction work completed in Uzbekistan falls on private sector
Turkey to receive 6.5 million doses of China's vaccine next week
Dutch police arrest alleged Asian drug syndicate kingpin
Georgia reports 546 coronavirus cases, 1 456 recoveries, 17 deaths
Germany ready to assist Kyrgyzstan in implementing green economy policies
President Rouhani: Iran's economic ties entering new phase
UK detects 77 cases of South African COVID variant, nine of Brazilian
Azerbaijan shows footage from Ashaghi Aybasanli village of Fuzuli district (PHOTO/VIDEO)
Implementation of drilling operations continue in Iran's oil fields
China sees fall in new COVID-19 cases amid strict local lockdowns
Iran's NIDC declares number of drilled oil & gas wells
Iran unveils details of exports via Bilasuvar border checkpoint
Uzbekistan to launch charter flights from Russia to Tashkent
Chinese smartphone maker discloses amount invested in opening factories in Turkey
Buy/sell operations at Iran Mercantile Exchange revealed
Georgia's import of tubes, pipes, hollow profiles from Turkey increases
Body of Azerbaijani citizen killed on Turkish ship to be sent to his homeland soon - Azerbaijani Foreign Ministry
Israel to start COVID-19 vaccination for high school students
Iran reveals COVID-19 data for January 24
Azerbaijan confirms 568 more COVID-19 recoveries
Portugal votes for new president at height of pandemic
Expert talks promoting import of electric and hybrid vehicles to Azerbaijan
Turkmennebit opens tender for purchase of various equipment
Azerbaijan shows footage from Jomerd village of Kalbajar district (PHOTO/VIDEO)
Sales of goods at Iran Mercantile Exchange spike
Iran reveals amount of loans issued to manufacturing companies
Georgia increases export of marine mammals, fish fats, oils and their fractions to Turkey
S&P talks about Azerbaijan's GDP growth in 2022-2024
Turkey set to receive second vaccine shipment from China soon
Russia records over 21,100 daily coronavirus cases
Weekly review of Azerbaijani precious metals market
Kazakhstan's exports volume to Georgia increases multifold
Azerbaijan's strategic foreign exchange reserves increase year on year
Iran announces volume of sprat caught in Caspian Sea
Azerbaijan shares footage from Ashaghi Veysalli village of Fuzuli district (PHOTO/VIDEO)
Consumption of steel products in Iran increases
3 injured as blast hits vehicle in Kabul
Weekly review of Azerbaijani currency market
Georgia reveals data on exports of semi-finished products of iron or non-alloy steel to Turkey
Iranian companies join UN CTCN
Kazakhstan’s daily COVID-19 case count stands at 1,584
Weekly review of main events in Azerbaijan's transport sector
UK to quarantine visitors from nations with high COVID-19 risk
China rescues first person from Shandong gold mine: state media
Over 2 mln coronavirus cases registered in Colombia
Israel reports 4,550 new COVID-19 cases, 593,578 in total
Iran's Marun Oil & Gas Production Company manufactures certain equipment
Iran to begin COVID-19 vaccinations in coming weeks: President Rouhani
France registers 23,924 new COVID-19 cases, 230 deaths in one day
Turkmenenergo to sign new contracts with foreign companies
7.0-magnitude quake hits South Shetland Islands: CENC
Turkey reports 5,856 new COVID-19 cases, 2,424,328 in total
After first phone call, UK PM Johnson looks forward to working with Biden
UK records another 33,552 coronavirus cases, 1,348 deaths
WHO reports over 600,000 new daily cases of COVID-19
Azerbaijani, Turkish FMs discuss pirate attack on ship
Top Spanish general resigns over allegations of vaccination queue-jumping
Pirates hijack Turkish ship off coast of Guinea, one person killed
BMB Trade Group and Uzbek Saffron Research Center discuss saffron cultivation and processing
Trend TV shares video report from plundered during Armenian occupation Azerbaijani Zangilan
Belarus, Kazakhstan seek closer cooperation in exchange trade
Management of Azerbaijan's State Oil Company being improved - Decree
New staff of Azerbaijani SOCAR's Supervisory Board approved
Georgia's external merchandise trade down 14.8% in 2020
Turkey halts flights from Brazil due to new COVID-19 variant
Gas pressure in Iran's South Pars gas field projected to decrease
Iran's gas processing potential to increase
Portugal holds presidential election as COVID-19 cases spiral
Italy reports 488 coronavirus deaths and 13,331 new cases
Italy to rethink vaccine roll out if supply problems persist
US broadcaster, journalist Larry King dies aged 87
Russia signs deal with Turkey on vaccine production
Azerbaijani MoD issues footage from Kalbajar district's Gamishli village (PHOTO/VIDEO)
Manat exchange rate against dollar to remain unchanged - Standard & Poor's
Bahar Azadi gold coin price again falling in Iran
Azerbaijan considering issues of regional schools damaged during Karabakh War
Iranian Energy Exchange announces products to be on sale on January 24
State subsidy to increase from 10 to 15 GEL per 50 kg of wheat flour in Georgia
Goods transit via Iran's Bileh Savar on rise
Tax authorities of Kyrgyzstan, Russia discuss launch of joint project
Japan's COVID-19 death toll exceeds 5,000 as total cases surpass 360,000
Indian gov't confirms outbreak of bird flu
Azerbaijani president expresses condolences to Ukranian counterpart
Bulgaria to ease some COVID-19 rules, restaurants closed for now
COVID-19 vaccine delays may slow wider Irish roll-out, says PM
Azerbaijan confirms 705 more COVID-19 recoveries
WHO office in Azerbaijan discusses project on preventing deaths from COVID-19 pandemic
All news