Iran’s TEDPIX surges 11,000 points on Monday’s session end
Date
8/27/2024 3:56:36 AM
(MENAFN) On Monday, the TEDPIX, which is the main index of the Tehran stock exchange (TSE), saw a significant rise, climbing by 10,986 points to reach 2,063,277. This increase occurred on the third day of the Iranian calendar week, indicating positive market momentum. The TSE is the most prominent of Iran's four stock exchanges, with the other three being the Iran Mercantile Exchange (IME), Iran Energy Exchange (IRENEX), and the over-the-counter market known as Iran Fara bourse (IFB).
In a move to bolster the stock market, the Central Bank of Iran (CBI) has recently approved a directive that allows Iranian banks to provide up to 100 trillion rials, approximately USD200 million, in funding support. This decision was reached during a meeting of the CBI Supreme Council on August 20, chaired by the CBI Governor, Mohammadreza Farzin. The directive represents a strategic effort by the central bank to inject liquidity into the stock market during a period of fluctuating investor confidence.
Governor Farzin emphasized the importance of carefully managing the allocation of these funds, urging the Securities and Exchange Organization (SEO) to take into account the concerns of shareholders. The governor stressed that the resources should be injected in a manner that effectively strengthens the capital market. Additionally, Farzin outlined new measures by the CBI aimed at further supporting the stock market, with a particular focus on financing initiatives that could accelerate the development of listed companies.
Among the CBI's measures, the first involves guaranteeing 3.6 quadrillion rials (approximately USD7.2 billion) in bonds issued by operating banks to supply working capital to companies listed on the stock market. The second measure includes the issuance of 2.0 billion euros in foreign currency sukuk bonds to support the development plans of listed companies, particularly those in the petrochemical and mining sectors. The third measure is a provision of 1.5 billion euros in foreign currency loans to companies with foreign exchange income and quick-return projects, aiming to boost their export capabilities. Furthermore, Majid Eshqi, the head of Iran’s Securities and Exchange Organization (SEO), announced that the country’s banks, major holdings, and government organizations are set to collaborate in these efforts to support the stock market.
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