Iran Capital Market Performance Noticeable

EghtesadOnline: In the first six months (March 20-Sept. 22) of current fiscal, the capital market provided finance worth 484 trillion rials ($4.2 billion), said a report by the Economic Review Department of Tehran Chamber of Commerce, Industries, Mines and Agriculture.

News ID: ۷۴۸۷۹۱

23 October 2019

The figure indicates a whopping 111% growth compared to the first half of the previous fiscal year when businesses acquired 229 trillion rials ($2 billion) through the capital market, according to the report released on the TCCIM website.

The share of finance by equity financing rose from 53 trillion rials in H1 of last year to 282 trillion rials ($2.4 billion) by Sept. 22.

In addition, debt financing amounted to 202 trillion rials ($1.7 billion) of the total funding, rising from the previous 176 trillion rials in the first half of last year, Financial Tribune reported.

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.

The number of initial public offering in Tehran Stock Exchange and the over-the-counter equity market, Iran Fara Bourse, has grown two and a half times in the first six months of current fiscal year.

Both markets then hosted more than 15 IPOs.

In the month to October 20, more than 103 billion shares worth 402 trillion rials ($3.5 billion) were traded in 10.3 million deals in the TSE

The figures indicate 41% and 100% rise, respectively, in value and volume of trades during the period compared to the same period last year.

By the end of the reviewed month, the main index of TSE, TEDPIX, stood at 301,400 points, indicating a growth of 69% compared the corresponding period last year.

IME Performance

The value and volume of trade in the Iran Mercantile Exchange during the month to Oct. 20 rose 30% and 23%, respectively compared to same period last year.

Investors traded 1.7 million tons of goods worth 92 trillion rials ($807 million) in the commodity bourse during the reviewed month while 1.4 million tons of goods valued at 71 trillion rials were sold in the market in the corresponding period last year.

Data showed an average 6% rise in the price of commodities in the IME during the one-year period.

Regarding the performance of industries listed with the IME, the value of metals trade saw a 51% rise during the month compared to the same period a year ago. There was a 49% growth in the number of traded metals.

Metals weighing 848,000 tons worth 47 trillion rials were traded during the month at the IME.

A total of 837,000 tons of petrochemicals and oil products worth 46 trillion rials were traded in the same month, indicating a 21.3% and 51.4% growth in value and in volume, respectively.

From the beginning of the year to October 20, oil products worth 119 trillion rials ($1 billion) were traded in the Iran Energy Exchange.

Trade in a variety of energy carriers at IRENEX generated foreign currency worth $594 million in seven months. Accounting for 26% of the total earnings, gasoline had largest share of trade.

Transactions mainly involved diesel, gasoline, LNG, raffinate, heavy crude, solvent 402 (white spirit), solvent 503, heavy oil cut and heavy naphtha and electricity among others.