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Code: 50915 Visited: 53 Publish Date: Aug 06 2018 - 4:12
https://goo.gl/w6AJxL
Capital Market
Indices Breaking Over Unprecedented Levels
Tehran, Aug. 06 (SENA) - No long ago 100,000 was the all-time psychological resistance level for TEDPIX, the main benchmark in Iran capital market, but now the markets are setting new highs every day.

Tehran, Aug. 06 (SENA) - No long ago 100,000 was the all-time psychological resistance level for TEDPIX, the main benchmark in Iran capital market, but now the markets are setting new highs every day. In the last week alone, the index grew 14%. The indices are still marching aggressively, with TEDPIX growing roughly 5,200 points or 4% today, 6 August, setting a new high at 133,646.

The bullish trend has received a lot of attention from media so, in this regard, Chief Executive of Securities and Exchange Market was the special guest at Negah Yek live program of national Chanel One. Following discussions about the latest facts and figures, as well as the steps by the regulator to enhance transparency by modifying procedures and regulations, Mohammadi named areas that need special attention to keep the market sentiment.

He referred to the latest decision regarding the Justice shares whose shareholders are over 50 million Iranians. The last round of dividends was paid to people 2 months ago, but the shares are locked and still can’t be traded. The SEO has proposed to bundle up the shares as different funds so that every shareholder can trade their units independently. He also underlined that the diversity of Justice Shares’ portfolio is considerably high so it does not impose tremendous risks on individuals.

He also talked about the decision of the government to establish a system called Nima as the secondary market for currency trading, which is under the supervision of the Central Bank of Iran. It was initially reported that the mechanism will be under control of the capital market. The CEO said that if the mechanism works properly the capital market will benefit too.

Talking about ambiguities in certain industries, Mohammadi mentioned that petrochemicals are vital for Iran’s economy, therefore the government and parliament must work closely to make their input pricing certain and transparent.

Mohammadi also praised the latest decisions by the authorities to reduce the trading tax paid by the selling side from 0.5% to 0.1% as well as omitting the tax on capital raise of certain companies. Less tax on trades increases the frequency of the trades and consequently enhances market liquidity. In advanced markets where the high frequency and algorithmic trading are making up to 80% of their total trade volume, high tax rates have no place.

Mohammadi wrapped up with some advice for investors. He noted that investing in the capital market can protect investors against inflation, but still they need to consider the fundamentals and performance of the companies and don’t forget to diversify their portfolios.

 

 

 
By: Security and Exchange News Agency (SENA)
 
 
 
 
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