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barred any increase in foreign portfolio investment into Iran. That is estimated to have stayed around $50m since 2018, down from 2009 when it exceeded $100m, according to local equity houses.
“Iran’s capital market is for investors who have stamina, rather than those who see skyrocketing figures and dream of quick money,” a manager of a local investment fund was cited as remarking by the UK financial daily.
Iran - Financial market as of Jan 2020 as of Jun 2019 as of Jun 2018 as of Dec 2017
Equity market index: Tehran Stock Exchange (TEDPIX)
427,139 248,533 111,528.2 95,561.5
Market capitalisation: % of GDP
23.9% (2017) 23.9% (2017) 25.7% (2016) 22.7% (2015)
Market cap: Tehran Stock Exchange 327.20 (Dec 224.85 100.66 105.98 (TSE) (USD bn) 2019)
PE ratio: TSE 8.60 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.
37​ IRAN Country Report​ February 2020 www.intellinews.com