TSE Chief Defends Market Performance

Trading has picked up on Tehran Stock Exchange despite its flat performance so far this year, according to TSE’s chief executive.

“Returns are not the only criteria for reviewing the stock market’s performance. Liquidity and trade volume are more important in the stock market and they have grown compared to last year,” Hassan Qalibaf-Asl was also quoted as saying by ILNA.

“In the past seven months, trade volume has risen 70%. It was 200 trillion rials for the same period last year but has reached 380 trillion rials now.”

Qalibaf-Asl’s remarks, however, bring little solace to stock investors who have seen the market’s benchmark fall from the start of the Iranian year in March only to recoup those losses but go no further.

This is while inflation is around 10% and bond yields are going over 20% per year.

TSE’s TEDPIX has edged up 611 points since March 19 (the start of the Iranian Year) to 80,830 points on Wednesday.

Analysts expect a bleak outlook for TSE, as trading of many bank shares, which is a key activity on TSE, has been halted and is set to resume after announcing losses. Resumption of trading of stocks is expected to push the market lower.

Qalibaf, however, has lined up 10 initial public offerings in his talks with major Iranian companies to bolster the market.

The first of which is Barkat Pharmed Co.–one of Iran’s largest pharmaceutical holdings that has already listed many of its subsidiaries.