400,000 New Investors in Tehran Stock Market

EghtesadOnline: Since the beginning of the current calendar year (March 20) close to 400,000 trading codes were issued for newcomers in the stock market, said the head of Tehran Stock Exchange.

News ID: ۷۴۸۶۸۸

12 October 2019

Ali Sahraee said the new investors injected more than 30 trillion rials ($270 million) into the stock market during the seven months, ILNA reported.

Based on data released by the Central Securities Depository of Iran, there were 11.1 million active trading codes in the capital market by the end of first half of the current year on September 22.

Investors in the stock market contributed 120 trillion rials ($1 billion) to the listed companies, Financial Tribune reported.

“Funding was made through various methods, namely by increasing capital, Initial Public Offering and selling bonds,” the senior official said.

Despite the increasing share of equity market in financing enterprises, the main burden is still on banks, Sahraee noted.

The Economic Research Department of Tehran Chamber of Commerce, Industries, Mines and Agriculture said the percentage of capital market contribution to financing businesses increased from 5.1% in the end of the fourth month of the last fiscal year (July 22, 2018) to 12.7% in the same period this year.

Funds procured from the capital market reached 309 trillion rials ($2.7 billion) by the end of the fourth calendar month this year, indicating a whopping 255% growth compared to the first four months of the previous year when the amount was 87 trillion rials ($783 million).

The share of finance by equity financing rose from 28 trillion rials to 153 trillion rials ($1.3 billion).

Likewise, the share of debt financing reached 156 trillion rials ($1.4 billion) from the previously 59 trillion rials reported last year.

Equity financing is the method of raising capital by selling company stock to investors while debt financing occurs when a firm raises money for working capital by selling debt instruments to individuals and institutional investors.