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Iran - Financial market as of Jun 2019 as of Jun 2018 as of Dec 2017
Equity market index: Tehran Stock Exchange (TEDPIX)
248,533 111,528.2 95,561.5
Market capitalisation: % of GDP
23.9% (2017) 25.7% (2016) 22.7% (2015)
Market cap: Tehran Stock Exchange (TSE) 224.85 100.66 105.98 (USD bn)
PE ratio: TSE 8.41 6.76 7.01 Source: CEIC
8.3.1 Iran Mercantile Exchange (IME)
Iran launches pistachio futures market
The Iran Mercantile Exchange (IME) on October 13 launched a pistachio futures market, Tehran’s Financial Tribune reported.
Looking for approaches that squeeze added value from pistachio reserves, the IME is banking on the fluctuating price of the nut being suited to a futures market setting.
“The reason why there is no similar market in the world for either pistachios or saffron is because these things are mainly farmed in Iran,” the IME website reported IME chief Hamed Soltaninejad as saying at an opening ceremony for the futures market.
To start with, 100 kilograms of pistachios will be traded per futures contract. The first contracts are set to mature in November and December.
Buyers can place an order for a maximum 25 contracts. The daily price spread is set at +5% of the settlement price arranged a day earlier.
Iran and the US account for 85% of the world’s production of pistachios according to the Iran Pistachio Association. However in recent decades, given inefficiencies in export and drought in Iran, American pistachio farmers have pushed ahead of their main rival.
In May, the IME launched the world’s first saffron futures market. T he market for the highly valued flower stem used as a condiment received a warm reception.
On the first day of trading, 102.7kg of crown saffron transferred hands, with 1,027 contracts signed. The average price per gram on the day was IRR67,800 to IRR70,000, Tasnim News Agency reported.
8.4 Fixed income
8.4.1 Fixed income - bond news
National Iranian Oil issue IRR 20bn of fixed rate bonds in mid-March
Iran badly needs foreign investment to boost output from its oil and gas reserves because much of its hydrocarbon production has been restricted or crippled by years of Western sanctions.
A manager at National Iranian Oil Co (NIOC) said on March 12 there were 200 undeveloped oil and gas fields in Iran. “The recovery rate of Iranian fields is 10% lower than the average rate of recovery in the world,” Karim Zobeidi, NIOC’s deputy for planning, was quoted as saying by Shana.
42 IRAN Country Report November 2019 www.intellinews.com
