TEDPIX drops 198 points on Monday

TEHRAN- TEDPIX, the main index of Tehran Stock Exchange (TSE), lost 198 points on Monday.

As reported, the index closed at 1.311 million points at the end of the Monday trades.

TEDPIX gained over 7,000 points in the past Iranian calendar week (ended on Friday).

TSE is one of theĀ fourĀ IranianĀ stock exchanges, the other three ones are IranĀ Mercantile Exchange (IME),Ā IranĀ Energy Exchange (IRENEX), and Iranā€™s over-the-counter (OTC) market, known asĀ Iran Fara BourseĀ (IFB).

Head of Iranā€™s Securities and Exchange Organization (SEO) Majid Eshqi, in a letter to First Vice President Mohammad Mokhber, has outlined eight major challenges that the Iranian stock market is currently facing.

According to Eshqi, increasing interest rates which has resulted in the withdrawal of liquidity from the capital market, decreasing the profit margin of companies due to the increase in the prices of feed and energy carriers, dictated pricing of products, carrying out the transactions of National Iranian Oil Refining and Distribution Company (NIORDC) at the energy exchange, fluctuation in forex rate, transfer of shares in major auto companies, making decisions for export-oriented companies without considering macroeconomic consequences and cutting electricity in summer and gas shortage in winter are the major challenges impacting the performance of the stock market.

In this letter, Eshqi has also included some suggestions for managing uncertainties in the stock market.

Stabilizing bank interest rates, removing the European hub rate from the pricing formula of feed and fuel, eliminating dictated pricing, making the financial relations between the government and economic enterprises more transparent, and depositing the remaining resources allocated by the National Development Fund to the Market Stabilization Fund are some of the suggestions made by the SEO head for boosting the stock market performance.

MA/MA

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