Iran’s TEDPIX surges by 8,200 points on Wednesday’s end
Date
8/28/2024 9:52:16 AM
(MENAFN) On Wednesday, the TEDPIX, the main index of the Tehran stock exchange (TSE), increased by 8,246 points, reaching a level of 2,076,272. This uptick marks the fifth day of trading in the Iranian calendar week. The TSE, as the primary Iranian stock exchange among its counterparts—including the Iran Mercantile Exchange (IME), Iran Energy Exchange (IRENEX), and Iran Fara bourse (IFB)—continues to play a crucial role in the country's financial landscape.
In recent developments, the Central Bank of Iran (CBI) has introduced a directive aimed at bolstering the stock market. Approved on August 20 during a meeting chaired by CBI Governor Mohammadreza Farzin, the directive allows banks to allocate up to 100 trillion rials (approximately $200 million) to support market stability and growth. Farzin emphasized that the Securities and Exchange Organization (SEO) should address shareholder concerns and ensure that these funds effectively enhance the capital market.
Farzin detailed three new measures intended to support the stock market and small shareholders. The first measure involves guaranteeing 3.6 quadrillion rials (about $7.2 billion) in bonds from operational banks to issue Riyal financing bonds, which will provide working capital to listed companies. The second measure includes issuing 2.0 billion euros in foreign currency sukuk bonds to support development projects in the petrochemical and mining sectors. The third measure proposes granting 1.5 billion euros in foreign currency loans to listed companies with foreign exchange income, aimed at boosting exports.
Majid Eshqi, head of Iran's Securities and Exchange Organization (SEO), stated that banks, major holdings, and government bodies are set to collaborate in these efforts. The Supreme Council of the Stock Market has also focused on providing capital through the Capital Market Development and Stabilization Fund (CMDSF). Eshqi noted that these initiatives are designed to reassure shareholders and stabilize the market, enhancing confidence in the future of their investments.
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