Close to 1.24 million trading codes were issued for investors since the beginning of the current fiscal year (March 20) up until mid-June.
Upsurge in the number of investors during the relatively short period is reportedly due to the growing traction of the stock market and high return of investment in the bourse, the Securities and Exchange News Agency reported.
The figure is staggering given that in the entire last fiscal year (March 2019-20) 822,000 trading codes were issued. The total number of trading codes now surpasses 12.8 million.
Apart from the stock market boom, SENA linked investors’ interest in recent government plans, such as a divestment scheme that involves ceding government shares via exchange-traded funds, and a plan to remove the ban on trading the so-called “Justice Shares”.
Justice Shares are shares of big government-owned companies given to the six lowest income deciles a decade ago. The shares until now were not tradable.
More than 48 million Iranians own such shares and need trading codes to sell them in the stock market. The head of Central Securities Depository of Iran said it plans to issue trading codes for all owners of Justice Shares.
This means that 58.9% of the population will have trading codes, making Iran among the top in the world in terms of percentage of stock ownership per population.
As per a Gallup study in 2020, 55% of Americans reported that they own stocks, based on polls conducted in March and April. This is identical to the average 55% recorded in 2019 and similar to the average of 54% Gallup has measured since 2010.
In addition, the government in Tehran has launched divesture schemes via the stock market, which is subject to the presence of investors in the share market.
The scheme involves offering shares in 18 companies via ETS in three phases. The first phase began in May with shares in three banks and two insurance companies.
A total of 58.86 trillion rials ($325 million) worth of ETF units were bought by 3.5 million people, the Ministry of Economy said.
To encourage more people to the bourse, the stock exchange regulator eased conditions for issuing trading codes for new investors.
CSDI said last month it will soon be possible to issue codes without the physical presence of applicants, allowing prospective investors to apply for trading codes via electronic platforms.
After the unprecedented 200% gain in the last fiscal year (March 2019-20 ), the Tehran Stock Exchange rallied higher since the beginning of the year gaining upwards of 118% until Wednesday.
