“During the last 5 months, since the beginning of the current Iranian year, IRR 300,000 billion was traded at TSE, which is a decline from IRR 420,000 billion in the same period last year”, stated Dr. Hassan Ghalibaf Asl, TSEs CEO.
However, he expressed that the Exchange on-line trading has increased and exceeded to IRR 90,000 billion in the past 5 months, as compared to IRR 70,000 billion last year in the same period. Number of trading has also risen from 5 million to 5.4 million transactions this year. Bonds trading grew about one third in the last 5 months than the similar time last year and reached IRR 4,000 billion.
Dr. Ghalibaf explained TSEs index movement in the period. “On 20 March 2014, the broad index closed at 79,015 and during the following 5 months lost about 6.5 percent to stand at 73,905. The market average P/E ratio was 7.1 on March and lowered to around 5.5 in the middle of August”, he stated.
TSEs CEO confirmed that 105,000 new investment codes have been issued in the period, which is more than double comparing the number of codes issued in the similar period last year.
Dr. Ghalibaf explained the market’s lower turnover and decreasing trends as a result of the squeezing policies, which have diminished liquidity in all markets, but mentioned that listed companies 13 percent profit growth is a bright sign of our market potentials and its stabilized position in the Iranian economy.
“Three new companies were listed in the last 5 months and ten other applicant companies are under listing process. Once the market is suitable and the issuers decide, we will be able to have the IPOs. However, six previously listed companies were delisted due to lack of listing qualifications and their shares were transferred to IFB, the junior Exchnage”, he added.
TSEs CEO indicated that more than 100 foreign investors had meetings with the market’s authorities in the period and showed their interest to invest in the Exchange once the sanctions are lifted. Total foreign investment turnover over the last year was around IRR 2,000 billion. Currently, around 200 foreign individuals and entities are among the market investors.