TSE witnesses 578% growth in 2 years

TSE’s worth of shares stood at 26 trillion rials (about $619 million) at the end of the first month of the current Iranian calendar year (April 19), which shows 38.5 percent growth from the year start (March 20).

The growth trend in Iran’s stock market was outstanding in the past Iranian calendar year 1398 (ended on March 19).

While the prosperity was witnessed in the four major stock exchanges of the country, i.e. Tehran Stock Exchange (TSE), Iran’s over-the-counter (OTC) market known as Iran Fara Bourse (IFB), Iran Mercantile Exchange (IME), and Iran Energy Exchange (IRENEX), in the past year, TSE, which is the major one among the mentioned four exchanges, experienced a huge boom.

TEDPIX, the main index of TSE, that had closed at 178,000 points at the end of the year 1397, climbed to 512,000 points at the end of last year, and through surpassing half a million points it registered a new record in the exchange’s existence.

Many capital market experts and also those active in this market believe that Tehran Stock Exchange experienced a golden era in the past year, as the volume of trades and the number of shareholders in this market during the previous year was not at all comparable with those of its preceding years.

While the value of trades in TSE jumped 2.6 folds in the past year, return on investment (ROI) reached 180 percent in this market, registering the highest annual growth in the exchange’s history.

Different factors contributed to the past year’s prominent success in the stock market.

One important factor was the proper ground laid in the stock market and providing a more appropriate condition for traders, for example through setting better regulations and applying some new financial instruments.

People’s elevated knowledge about the stock market was another contributing factor in this due.

And the other factor was the status of parallel markets, such as those of foreign currency, gold coin, and housing in the past year that made making investment in the stock market a better and more profitable choice for the investors.

While the past Iranian year was full of success for the TSE, the market is also preserving its successful performance in the current year, and the noticeable point in this due is that the other economic sectors are experiencing some declining trend due to the coronavirus pandemic.

We have been witnessing new record highs continuously posted by the exchange since the year start.

On April 18, TEDPIX registered its highest-ever daily jump, as it gained 23,219 points to stand at 668,981.

It also experienced its highest-ever weekly growth in the week ended on April 24, while the index rose 96,160 points to 741,923.

Iran’s stock market also witnessed its largest-ever initial public offering (IPO) on April 15, when Social Security Investment Company (SSIC, also known by its Persian acronym Shasta) offered eight billion shares, which account for 10 percent of its stakes, for sales in Tehran Stock Exchange.

Anticipating that the TSE’s trend of growth will be also continued in the current year is endorsed as the government is strongly determined to carry out its privatization plan through offering the shares of some state-owned organizations in the stock market during this year.