Page 35 - IRANRptFeb19

Tehran Stock Exchange launches futures contracts
Tehran Stock Exchange hits high as ordinary investors struggle to find investment options amid economic difficulties
The Tehran Stock Exchange (TSE) has launched futures contracts for local buyers with seven companies officially on the ticket, Mehr News Agency reported on December 16.
The TSE said that by launching the futures market in Iran it is hoped that people deterred by falling share prices caused by dollar depreciation will continue to buy into the stock market at set future prices.
The new futures market is supported by the Central Securities Depository of Iran (CSDI), the Iranian Securities and Exchange Organization (SEO) and the TSE board.
TSE director Ali Sahraei said: "Today we launch futures for seven [companies] mainly in the auto, banking, base metals, minerals, refined products and petrochemical sectors."
He added: “The Jurisprudence Committee of the SEO has approved the regulations related to the futures and we hope to see a highly-applied derivative for hedging on the capital market.”
The Tehran Stock Exchange’s (TSE’s) main index, the Tedpix, registered a record high during September 10 trading, with 559bn shares worth IRR8.433tn ($200mn) traded, according to the TSE’s website.
The dollar and other hard currencies have moved beyond the reach of ordinary investors amid the economic turmoil brought about by the snapback of heavy US sanctions. This has meant the diversion of substantial investment capital to the TSE, seen as one of the last resorts for liquidity in search of a potentially profitable home.
Some 205,608 bourse deals took place on September 10. The main index rose to 1,894 while the secondary market hit 5,308.
The IFX, the leading index of Iran's over-the-counter (OTC) market known as the Iran Fara Bourse (IFB), also hit a new record on September 10. It rose 27 points to 1,642, as 814mn securities worth IRR4.313tn ($102.6mn) were traded.
Iran - Financial market as of Sep 2018 as of Jun 2018 as of Mar 2018 as of Dec 2017
Equity market index: Tehran Stock Exchange (TEDPIX)
195,104.0 111,528.2 96,938.8 95,561.5
Market capitalisation: % of GDP
23.9% (2017) 23.9% (2017) 25.6% (2016) 22.7% (2015)
Market cap: Tehran Stock Exchange / 100.66 102.15 105.98 (TSE) (USD bn)
PE ratio: TSE 11.04 6.76 6.49 7.01 Source: CEIC
8.5 Fixed income
8.5.1 Fixed income - bond news
Iran prepares Islamic bond, warrant and insurance-linked securities products
Iran is developing a range of new financial products, from Islamic bonds to warrants and insurance-linked securities, in an effort to give local firms more funding options as sanctions put pressure on the economy, Reuters reported on October 2.
But Iran’s financial system has been able to ride out past periods of sanctions, and officials told the news agency that they are working on new products to stimulate capital markets activity. All the products are structured to obey
35 IRAN Country Report February 2019 www.intellinews.com