Iran Fara Bourse (IFB) ended the third month of the Iranian calendar year to June 22 on the upside though its main index IFX declined.
According to the IFB public relations office, in the 21 trading days 182 billion shares were traded worth 16,000 trillion rials ($32.6 billion), posting 88% growth from on the same period last year.
The average daily trading volume reached 8 billion shares, worth some 76 trillion rials ($155 million). However, IFX posted 3.3% decline during the said period.
The First Market logged in 260 trillion rials ($530 million), indicating 59% decline on the same period last year. The Second Market posted deals worth 230 trillion rials ($469 million) – up 36%.
The Base Market, which includes fixed-income securities, saw a turnover of nearly 210 trillion rials ($428 million) in shares, representing 81% growth.
Among industries present in the IFB, the investment sector accounted for 10% of the total trade followed by the auto and food industry near 8%.
A glance on the IFB market shows that the Second Market held 43% of the total market value and the base market 20%. Islamic debt securities represented 18% of the total market value and the First Market 16%.
During the period the market for new financial instruments posted 5% growth in volume on the same period last year.
Future Plans
The over-the-counter exchange recently said it has plans to create two new markets including one for knowledge-based enterprises.
Mohammad Ali Shirazi, the CEO, said growing a knowledge-based economy is no longer a convenience but a compulsion.
Referring to the missing link in the chain of converting knowledge into wealth, Shirazi said, "Financing knowledge-based companies is a missing link, and entrepreneurs in this sector have real concerns about securing funding and venture capital for their projects. The new market can [help] fill that gap.”
He recalled the range of financial tools, institutions, and markets available to Iran Fara Bourse, saying that these features can and should create a strong environment for the expansion of knowledge-based firms and their funding.
The exchange has two main markets, namely the first and second markets, which are specific to companies with acceptance capabilities. "Currently, there are more than 170 companies listed in these markets, 14 of which are knowledge-based.”
The measure comes as the government pushes for the expansion of knowledge-based firms and effective innovation. Iran has been striving to promote the knowledge-based economy and boost innovation and entrepreneurship.
The country aims to increase the share of knowledge-based products in the economy and promote tech-based startups.
IFB was established in 2009 as an over-the-counter market for securities and other financial instruments. The exchange is regulated by the Securities and Exchange Organization. It is a multi-commodity center trading in a wide range of items, namely securities, including equity, debt, and Islamic instruments.
The move to establish a new market for knowledge-based companies is a step forward. It will provide a platform for innovative startups to secure funding and grow, as well as attract new investment.
Per the rules, IFB can accept knowledge-based companies in both the first and second markets. In case of non-compliance with acceptance conditions, the over-the-counter market can serve as a suitable tool for the sector.
Tap30, a ride hailing app, went public last year. It was announced earlier that the next will be Café Bazaar, Iran’s largest Android app store and Filimo, a popular video-on-demand platform. It has been reported that almost 30 startups have applied to join the share market,
Iran has an estimated 7,000 knowledge-based companies and 1,600 startups. The government has welcomed the startups’ entry in the bourse and says it will support such firms given their inherent and potential visible role in the economy.
