This week Tehran Stock Exchange (TSE) became 50 years-old. TSE began operations in 1965 with two symbols being traded. Today, the market value of more than 588 traded symbols is approximately 108 billion dollars equal to 37% of the GDP. In 2008 this amount was equal to 14% of the GDP. The Minister of Economic Affairs and Finance, Masoud Karbasian has said that corporate financing via the capital market has grown 12-fold in the last decade. He also pointed to the “Capital Market Share in Financing Investment Projects” index and said: The index was 6% in 2013 and had grown to 20% in 2017.
In the 50th anniversary of Tehran Bourse, the Governor of the Central Bank, Valiollah Seif said: “Fundamental reforms in an economy with chronic diseases is difficult and time consuming; most of all it demands national consensus on all levels of government. It seems today, we have reached an understanding that each day these reforms are delayed, the accumulated cost to the country’s economy is increased at a progressive rate.” However, he also introduced illegal stakeholders as powerful obstacles towards this goal.
Although TSE celebrated its 50th birthday, but its overall index, TEPIX fell considerably over the week. The growth in US dollar index, followed by decrease in base metal prices, resulted 1.4 percent decline in TEPIX.
Iran Farabourse market capitalization increased by 3.3% over the week to close at 35.7 billion USD. However, its overall index, IFX, declined by 0.57 percent over the five trading days. See the charts above.
