Stock market index drops by 62,540 points on Saturday in Tehran

On Saturday, TEDPIX, the primary index of the Tehran Stock Exchange (TSE), saw a decrease of 62,540 points, resulting in a closing value of 2.922 million. The financial market in Iran had been inactive for a nine-day period following the onset of hostilities against the country, a measure taken to prevent shareholders from incurring losses during this turbulent time.

The Tehran Stock Exchange (TSE) stands as one of the most critical stock exchanges in Iran among the four, including the Iran Mercantile Exchange (IME), Iran Energy Exchange (IRENEX), and Iran Fara Bourse (IFB), which is recognized as Iran’s over-the-counter (OTC) market. The Government has set an ambitious goal to elevate the capital market’s role within the national financing system to 50% within the next five years. This strategy positions the capital market as a pivotal driver of economic vitality, employment growth, and industrial development within the country.

Hojatollah Seyedi, the head of the Securities and Exchange Organization (SEO), highlighted the organization’s 14th development plan, which involves implementing targeted measures to promote production, starting with fiscal incentives embedded in the national budget. He underscored other aspects of the government’s production strategy, including the implementation of the Law on Supporting Production and a comprehensive economic development plan currently under development by the Planning and Budget Organization (PBO).

The SEO has introduced new investment instruments within the capital market to bolster production, such as Murabaha bonds tailored to provide capital to small- and medium-sized enterprises. Seyedi outlined a definitive goal of achieving a balanced “50-50” financing model derived from a mixture of bank loans and capital market resources spanning a four-to-five-year timeline. The issuance of project-based company initial public offerings (IPOs) has begun, alongside the establishment of the necessary infrastructure for Murabaha bond issuance, which has elicited a surge in applications from producers seeking bond issuance licenses.

Seyedi unveiled five major initiatives to enhance efficiency and transparency in the capital market for the current Iranian calendar year. These plans encompass broadening the market through IPOs, particularly focusing on company-project listings, and augmenting the capital of existing listed enterprises. Emphasis has been placed on encouraging entrepreneurs and private companies to avail themselves of the opportunities afforded by the capital market.

The implementation of measures to enhance transparency, efficiency, and the timely dissemination of information within the capital market is a paramount initiative in the SEO’s agenda. Corporate governance systems are also targeted for improvement, ensuring that listed companies are well-managed to enhance performance and profitability, aligning with the broader objective of supporting production.

In conclusion, the capital market’s performance over the year remains uncertain, with its overall value contingent on market dynamics. Efforts are directed towards enhancing transparency, liquidity, and efficiency to foster growth and improvement compared to the previous year. The protection of shareholder rights and the promotion of fair transactions remain focal points in the capital market’s development roadmap. Shareholders must feel supported and secure in their rights, with measures in place to prevent information asymmetry and provide shareholders with access to essential performance data for informed decision-making.