TSE Seen as World’s Third Fastest-Growing Bourse

Tehran Stock Exchange was the world’s third fastest-growing bourse, according to a study carried out by TSE analysts who monitored the benchmarks of 17 global exchanges from March 21, 2017, to Jan. 20, 2018.

TSE’s main index, TEDPIX, rose from 77,230 to 98,221 to record 27.1% growth during the period under review.

This puts Iran just ahead of New York’s Nasdaq that posted a 25.6% growth to stand at fourth place. Nasdaq Stock Market is the second-largest exchange in the world by market capitalization with over $7 trillion, behind only New York Stock Exchange located in the same city.        

The TSE study indicates that TEDPIX gained in 70% of its 209 trading days under review. This puts the index over all other global exchanges in terms of gaining trade days.

Growth in global commodity prices and rial’s depreciation, against both US dollar and euro, have helped boost TSE stocks. Base metals were the market’s primary driver for most of the fiscal year, as better prices and weaker currency directly boosted their sales.

The world’s fastest-growing exchange index was the Hang Seng Index, which jumped 35.3% during the period. HSI is a freefloat-adjusted market capitalization-weighted stock market index in Hong Kong. It is used to record and monitor daily changes of the largest companies on the Hong Kong Stock Market and is the main indicator of the overall market performance in Hong Kong. These 50 constituent companies represent about 58% of the capitalization at the country’s bourse.

Next was Borsa Istanbul’s BIST 100, which grew 32.1% during the period under review. Borsa Istanbul is the sole exchange entity of Turkey combining the former Istanbul Stock Exchange, Istanbul Gold Exchange and the Derivatives Exchange of Turkey. Its market cap is currently at about $174.4 billion.

S&P Global’s Dow Jones Industrial Average was the fifth index in terms of returns, as it gained 25% during the period. The index tracks the performance of 30 large-cap NYSE and Nasdaq-listed companies.

The booming US stock market was the result of resurgent economic growth and blockbuster corporate profits. The biggest catalyst was likely the sweeping tax cuts US President Donald Trump signed into law, which over time will save corporate America billions of dollars, CNN reported.

The sixth place went to Mumbai’s BSE 30, as it grew 21.3% during the period, followed by S&P 500 with 18.7%, Tokyo’s Nikkie 225 with 18.3%, Tokyo’s TOPIX with 17.3%, Saudi Arabia’s TASI with 10.5%, Germany’s DAX and France’s CAC 40 both with 9%, Amsterdam’s AEX with 8.6%, Shanghai’s SSEC with 7.5%, Kuala Lumpur’s KLCI with 7.1%, Spain’s IBEX 35 with 2% and London’s FTSE 100 with 1.5%.

The UAE’s DFM was the only exchange having recorded a negative performance, as it dropped 3.6% for the period. DFM is one of three stock exchanges in the UAE. Abu Dhabi Securities Exchange also lists mostly UAE companies and Nasdaq Dubai was set up to trade international stocks.