Tehran Stock Exchange’s main index TEDPIX scored 3,152 points or 4.2% during the Iranian month of Mordad (July 22- August 21) to end at 78,086.4.
Over 16.6 billion shares valued at $1.3 billion were traded, with the number of shares traded and monthly trade value dropping 1.7% and 2.4% respectively compared to the previous month, the Financial Tribune’s analysis shows.
TEDPIX recorded its biggest jump on August 3. It surged gained 800 points and went up 1% to reach 77,883.3 – its highest since May 7.
Meanwhile, Iran Fara Bourse’s all-share index gained 17.7 points or 2.2% to stand at 805.32 during the same month.
Over 9.7 billion securities were traded in the over-the-counter exchange valued at $807.7 million, indicating 38% and 12.1% growth in the number of traded shares and trade value respectively.
Change of Guard at SEO
Mohammad Fetanat-Fard, the head of Securities and Exchange Organization stepped down on July 27 in a surprise move citing health problems. Subsequently, deputy economy minister Shahpour Mohammadi was appointed by the Bourse High Council to lead the organization.
“Fetanat-Fard took the helm of the SEO at a turbulent time. Within the 20 months in office, he delivered outstanding results in the capital market,” said Economy Minister Ali Tayyebnia, who has now appointed Fetanat as his advisor.
Mohammadi, for his part, said he is putting development of new financial instruments on top of his to-do list.
The other four board members of the SEO were also replaced. The shuffle came as a surprise to markets. Hassan Amiri, Ali Saeedi, Saeed Fallahpour and Ahmad Araghchi were appointed as board members.
Tax Exemption on Revaluation of Fixed Assets
Another important development in the stock market over the past month was First Vice President Es’haq Jahangiri’s issuance of a new directive to government bodies to execute a July 20 government decision to exempt gains from revaluing fixed assets from tax if companies revalue their assets before the fiscal year ends in March 2017.
The government had allowed a temporary exemption for companies if they carried out the revaluation before March 2016. Some companies including auto maker Iran Khodro, did not comply on time, overshooting the government deadline. Their stocks took a hit.
However, complaints and lobbying from companies which had failed to take advantage of the exemption soon followed with many media outlets supporting Iran Khodro and attributing market declines to ending the exemption.
Now with the directive extended companies that failed to sort their books in time have a second chance.
