30 May 2011
Tehran Stock Exchange's index will rise to 30,000 units in the current Iranian year (started March 21), announced managing director of Ghadir Investment Company.
Mohsen Me'mari said the government's supportive measures coupled with the market's high efficiency and low risk rate are among the advantages which made TSE investment profitable.
He said transactions in shares to the tune of $20 billion in the TSE would bring about a significant growth in the market this year, IRNA reported.
Founded in 1967, Tehran Stock Exchange has been one of the world's best performing stock markets in recent years and has ranked as the best bourse index in Europe, Africa and Middle East in 2010 in terms of performance of the main index.
The TSE's annual growth rate of main indices was also ranked as the second best among all members of the World Federation of Exchanges (WFE).
Meanwhile deputy head of Stock Exchange Company for publishers and members' affairs said the significant growth in efficiency of the capital market ensures its prosperity.
Mohammad Reza Rostami stated that following the ratification of a new capital market law in 2005, many infrastructures and institutions have been set up in the market.
The average daily trade value of the market is satisfactory, he said adding the development process would continue in the current year.
Privatization
Rostami said that based on a plan, the privatization process would continue in accordance with Article 44 of the Constitution.
In 2007, Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei urged state officials to expedite the implementation of the amendment to Article 44 and move rapidly toward privatization.
Article 44 of the Constitution requires 80 percent of the country's state-owned companies to be ceded to private ownership.
The official said that support for the private sector is on the company's agenda for the current year, adding ground has been prepared for private companies to get acquainted with the capital market's capacity.
Monetary and Capital Market
Referring to a package of policies drawn by the Central Bank of Iran for the current year, he noted banks and other monetary institutions should prioritize facilities for firms which are listed in bourse or those whose shares are transacted in the market.
In the current year, participation bonds will be sold in the bourse rather than the banks, he stated adding this would help establish a link between monetary and capital markets and lead to further growth in both.
Participation Bonds
In another development, Mohsen Bakhtiar, director general of the Energy Ministry's office for planning and strategic affairs said sales of participation bonds fund infrastructural projects.
"Some experts believe that selling participation bonds in the bourse would ease sales process and encourage people to purchase bonds.
He noted that water and electricity projects are expected to be funded from the sale of 80,000 billion rials ($8 billion) worth of participation bonds this year.
Bakhtiar said that the general budget, domestic and foreign investment, finance, national development fund and banks are among the other sources for funding energy projects.
Meanwhile, a member of Majlis Economic Commissions said establishment of mercantile exchange market in the cities particularly the megacities seems necessary.
Shakour Akbarnejad noted this would facilitate the activities of those involved in the industrial, agricultural and manufacturing sectors.
Tehran Stock Exchange's index will rise to 30,000 units in the current Iranian year (started March 21), announced managing director of Ghadir Investment Company.
Mohsen Me'mari said the government's supportive measures coupled with the market's high efficiency and low risk rate are among the advantages which made TSE investment profitable.
He said transactions in shares to the tune of $20 billion in the TSE would bring about a significant growth in the market this year, IRNA reported.
Founded in 1967, Tehran Stock Exchange has been one of the world's best performing stock markets in recent years and has ranked as the best bourse index in Europe, Africa and Middle East in 2010 in terms of performance of the main index.
The TSE's annual growth rate of main indices was also ranked as the second best among all members of the World Federation of Exchanges (WFE).
Meanwhile deputy head of Stock Exchange Company for publishers and members' affairs said the significant growth in efficiency of the capital market ensures its prosperity.
Mohammad Reza Rostami stated that following the ratification of a new capital market law in 2005, many infrastructures and institutions have been set up in the market.
The average daily trade value of the market is satisfactory, he said adding the development process would continue in the current year.
Privatization
Rostami said that based on a plan, the privatization process would continue in accordance with Article 44 of the Constitution.
In 2007, Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei urged state officials to expedite the implementation of the amendment to Article 44 and move rapidly toward privatization.
Article 44 of the Constitution requires 80 percent of the country's state-owned companies to be ceded to private ownership.
The official said that support for the private sector is on the company's agenda for the current year, adding ground has been prepared for private companies to get acquainted with the capital market's capacity.
Monetary and Capital Market
Referring to a package of policies drawn by the Central Bank of Iran for the current year, he noted banks and other monetary institutions should prioritize facilities for firms which are listed in bourse or those whose shares are transacted in the market.
In the current year, participation bonds will be sold in the bourse rather than the banks, he stated adding this would help establish a link between monetary and capital markets and lead to further growth in both.
Participation Bonds
In another development, Mohsen Bakhtiar, director general of the Energy Ministry's office for planning and strategic affairs said sales of participation bonds fund infrastructural projects.
"Some experts believe that selling participation bonds in the bourse would ease sales process and encourage people to purchase bonds.
He noted that water and electricity projects are expected to be funded from the sale of 80,000 billion rials ($8 billion) worth of participation bonds this year.
Bakhtiar said that the general budget, domestic and foreign investment, finance, national development fund and banks are among the other sources for funding energy projects.
Meanwhile, a member of Majlis Economic Commissions said establishment of mercantile exchange market in the cities particularly the megacities seems necessary.
Shakour Akbarnejad noted this would facilitate the activities of those involved in the industrial, agricultural and manufacturing sectors.
© Iran Daily 2011
