The main reasons behind the recent downtrend in the Tehran Stock Exchange have been discussed in a meeting attended by the top TSE and Fara Bourse (over-the-counter market) officials, directors of brokerage firms and also a group of stockbrokers.
The participants presented their views on the current atmosphere of trading at TSE and other markets, and proposed solutions for compensating for the lack of liquidity in the market, organizing the interest rates, improving regulation and monitoring monetary institutions, removing ambiguities over how stockbrokers are taxed (including the credits granted to the brokerage firms and the relevant costs), and opening the futures exchange in order to diversify trading options, while the government implements its plan of action to exit recession.
Meanwhile, Chairman of the Securities and Exchange Organization Ali Salehabadi explained SEO's plan for improving market activities.
A new bill, proposed by the cabinet on pricing of oil and petrochemical products, calls for a fixed price strategy for the refinery feedstock.
"If approved by the parliament, it will have a positive effect on the capital market," Salehabadi stated. SEO is currently working with the oil ministry to determine liquid feedstock pricing mechanism, he said.
"We understand the concerns of stockbrokers when it comes to the sale of non-operating assets of the banks and businesses," Salehabadi said, adding that the banks will be the first to offer their assets considering the stock market conditions.
The issue of asset sales is being studied in collaboration with the CBI and the ministry of economic affairs and finance.
The Tehran Stock Exchange is Iran's largest stock exchange, established in 1967. Until May 2012, 339 companies with a combined market capitalization of $104.21 billion were listed on TSE. TSE, which is a founding member of the Federation of Euro-Asian Stock Exchanges, has been one of the world's best performing stock exchanges from 2002 until 2011.
The TSE made headlines last year as its main index, TEDPIX, gained more than 133% on the hopes that the new president Hassan Rouhani would re-establish ties with the global economy after a much-awaited recovery of the national economy.
