The uncertain direction at Tehran Stock Exchange (TSE) in the week that ended Feb 19, was accompanied by further plummets and the TEDPIX’s new record low during the past 16 months.
TSE data illustrates that the stock market gauge lost 121 points or 0.18 percent to settle at 64,720. The first market index rose 156 points or 0.33 percent to end at 47,919. The second market index tumbled 1,847 points or 1.45 percent to stand at 127,255.
More than 3 billion shares changed hands, valued at almost 6.29 trillion rials to register close to 16 percent growth both for trade volume and value.
Bottom-up analysis indicates that the gloom hanging over the equity market is un likely to be lifted unless investors expectations about a potential nuclear deal comes true within the upcoming weeks.
Securities and Exchange Organizations (SEO)’s officials are scrambling to give a boost to the equity market’s trades by relaxing regulations, among other leverages that are expected to give a lift to the massively undervalued shares.
Easing regulations on authorized volume of trade at the equity market is likely to give a surge to trade volume, SENA quoted Mohammad-Reza Arabi, deputy for Supervision on Exchanges and Issuers as saying, adding: “Restrictions on trade volume for giant listed firms at the TSE like Persian Gulf Petrochemical Industry Company is the most crucial obstacle barricading large volume of shares.”
Global Approach to Absorb FDI
The equity market can be globalized to help listed companies grab the opportunity of being funded through foreign direct investment upon the observation of international regulations in financial statements; Mehr news agency quoted Mohammad Fetanatfard, head of the SEO as saying.
International standards in business reporting refers to XBRL, which stands for eXtensible Business Reporting Language. It is a language for the electronic communication of business information, providing major benefits in the preparation, analysis and communication of business information. It offers cost savings, greater efficiency and improved accuracy and reliability to all those involved in supplying or using business information.
Economic development is not expected by relying on local banking system and excluding the capital market, said Fetanatfard, adding that filing information electronically via the Comprehensive Database of All Listed Companies’ (CODAL’s) website, and in English in accordance with international standards is key to globalization.
TSE Monthly Review
The TSE’s benchmark tumbled 845 points or 1.29 percent in the month that ended Feb 19 compared to the previous month, as ambiguities keep squeezing the performance of listed companies.
The overall index’s 16-month record low was accompanied by continuous retreats both in trade volume and value, with more than 118 billion shares changing hands, worth almost 22.8 trillion rials to register 18, and 8 percent decline respectively.
Furthermore, 630,612 participating bonds were traded, valued at 625 billion rials, posting 71 and 71.26 percent in volume and value respectively.
Medical and measurement instruments industry with 15.58 percent had the highest volume of return among the listed industries at the TSE. A group of financial services, and auto and spare parts manufacturers with 11.5 and 10.35 percent also had lucrative trades.
