TEHRAN- TEDPIX, the main index of Tehran Stock Exchange (TSE), lost 11,630 points to 1.322 million on Saturday (the first day of Iranian calendar week).As reported, 4.728 billion securities worth 27.68 trillion rials (about $93.337 million) were traded at the TSE.
The first market’s index lost 10,192 points, and the second market’s index dropped 18,219 points.
TEDPIX lost 29,000 (2.1 percent) to 1.334 million in the past Iranian calendar week (ended on Friday).
During the past week, the indices of Mobarakeh Steel Company, Bandar Abbas Oil Refining Company, Iran Khodro Company, Saipa Company, Social Security Investment Company, National Copper Company, and Barekat Pharmaceutical Group were the most widely followed ones.
Capital market in a country eliminates the enterprises’ need for external financing that requires forex rate risk; and plays an important role in risk sharing and the effectiveness of capital allocation in various economic sectors, and as a result increases economic growth and welfare in society.
In Iran, where the capital market plays a small role in the long-term financing of enterprises, the government can play an important role in the development of the capital market and take initiatives to develop this market and increase its efficiency.
Some recent measures taken by the Iranian government indicate that the government is determined to support the capital market and strengthen this market’s role in the national economy.
One measure was the six clauses in the national budget bill for the next Iranian calendar year (starts on March 21) on supporting the capital market.
The budget bill, submitted by president to the parliament on December 12, has paid special attention to the capital market and bourse companies.
The measures considered in the budget bill and its overall positive effects on the capital market includes 1- Reforming the price of gas feed, as well as electricity, water, oxygen and other utilities for the petrochemical units, refineries, steel reduction units, and downstream industries 2-Reducing taxes on production units active in the stock market 3- Strengthening Capital Market Development and Stabilization Fund 4- Reducing the government’s revenue from selling bonds 5-Eliminating subsidized foreign currency allocations 6- Eliminating pre-ordered pricing.
Original News : https://www.tehrantimes.com/news/469084/TEDPIX-down-11-000-points-on-Saturday