Iran Fara Bourse (IFB) will announce three new indices in the coming days to help investors and analysts get a better grasp of the market, Majid Eshqi, head of the Security and Exchange Organization of Iran, said.
"So far we had only one index for IFB. By introducing new indices investors will be able to better explore and analyze the market. In fact, new indices, especially weighted indices, were needed to help address the problems created due to the variety in the market value of companies and market concentration," IBENA quoted him as saying.
According to the official, a special committee for indices at SEO has approved releasing equal-weighted indices, price index and price weighted index by the IFB. The three indices will be available on TSETMC.ir in near future.
Iran Fara Bourse is one of the four Iranian exchanges and operates under the supervision of the Securities and Exchange Organization (SEO), a member of IOSCO.
IFB was established on November 12, 2008 to assist companies wanting to join the capital market and enhance their corporate governance and business by providing easier listing requirements.
An equal-weighted index is a stock market index – comprised of a group of publicly traded companies – that invests an equal amount of money in the stock of each company that makes up the index. Thus, the performance of each company's stock carries equal importance in determining the total value of the index.
A total price-weighted index is a stock index in which each company included in the index makes up a fraction of the total index proportional to that company's share stock price per share. In its simplest form, adding the price of each stock in the index and dividing by the total number of companies determines the index's value.
A stock with a higher price will be given more weight than a stock with a lower price and will thus have a greater influence on the index's performance.
As per the latest data, IFB posted 155% increase in trade in the first 10 months of the year that ends in March. The IFB website said about 942 billion shares were traded at the junior stock exchange worth 80,838 trillion rials ($194.3 billion) in 10 months -- annual growth of 155% and 91% in value and volume, respectively.
More than 206 billion securities worth 1,072 trillion rials ($2.57b) were traded in IFB's First Market, up 48% in volume and 12% in value, during the period to January 20.
Over 179 billion securities worth 835 trillion rials ($2b) changed hands in the Second Market, registering 18% jump in volume and 21% drop in value.
Performance of this market in the fiscal month to January 20 shows that IFX gained 12.5% to close at 21,508. IFX had the highest rise on January 1 adding 588.2 points in one day.
During the month under review, more than 150 billion securities valued at 9,800 trillion rials ($23.55 billion) were traded, up 255% in value and 54% in value.
