Tehran Stock Exchange: 2006 At A Glance

During the first half of 2006, market continues the bearish trend which was started in 2005 and caused a 25 percent downfall. The market has started to resurge as from the second half, moving up until the end of 2006; the TEDPIX which evaluates the market return was increased by more than 8 percent. Key statistical figures in 2006 as compared to the figures for 2005 are as follow:

• TEPIX decreased by 1.80% from 10,258.91 to 10,074.48.
• Financial Index decreased by 28.16% from 25,150.59 to 18,068.84.
• Industrial Index increased by 1.59% from 7,957.47 to 8,083.81.
• TEDPIX increased by 8.28% from 28,821.77 to 31,207.64.
• TSE-50 decreased by 8.16% from 761.08 to 698.97.
• Market Capitalization decreased by 2.02% from $38,723.81 to $37,943.33 million.
• Volume of trades decreased by 16.64% from 10,939.79 to 13,123.62 million.
• Value of trades decreased by 37.89% from $4,885.88 to $7,866.25 million.
• The number of listed companies decreased reached 332 from 420. Some 90 companies have relegated to the new “Unofficial Board” which is in fact “temporary de-listing”. Two new companies have also added to the TSE list.
• Number of trades decreased by 19.39% from 2,252,972 to 1,816,144.

Meanwhile, the TSE has performed a series of development plans for market administration, regionalization, protecting shareholder rights and investors’ confidence. A brief summary of TSE’s measures can be described as follow:

1. Implementation of the new Capital Market Law, which resulted in:
   a) Demutualization of the TSE,
   b) Establishment of Securities & Exchange Organization (SEO) – the regulatory and supervisory body of capital market, and,
   c) Establishment of Central Securities Depository of Iran (CSDI).
2. Installment of the trading engine purchased from “Atos Euronext Market Solutions”; the user acceptance testing is to be started in the 1st quarter and the new system is being forecasted to go live during 2nd quarter of 2007.
3. Starting investment of foreigners as “Foreign Portfolio” for the first time.
4. Inauguration of more Regional Floors countrywide.
5. Hosting international seminars and workshops, including:
   d) Seminar on “Foreign Portfolio Investment”,
   e) Seminar on “Demutualization”, with the invitation of experts from “Hellenic Exchanges Group”.
6. Introduction “Unofficial Board” which is in fact a “temporary” Board for de-listing.
7. Changing the price fluctuation limit to + 2% from previous + 5%.
8. Appointment of Dr. Ali Rahmani as the first Managing Director in November.