The main index (TEPIX) and Market Capitalization were down 5.15 and 4.54 percent respectively over the previous month. The main reason for decline is the new pricing of lots of companies after holding their Annual General Assemblies and their "cash payments". The financial year of around 80 percent of all listed companies ends March 20 (on the eve of Iranian New Year), and based on Iranian Commercail Code, they should hold their annual GAs in maximum 4 months. Shareholders and investors call June and July the "season of GAs". Normally, the share price of a company declines after payment of cash dividend, which in turn will cause the decline in its "market cap"; and as a result, the overall TSE market cap followed by TSE main index will decrease as well. Some 114 companies start trading in the TSE with a new price after payment of cash dividend in the month of July only.
The TSE Dividend & Price Index (TEDPIX) - which considers both cash payment and overall market performance, and the TSE Dividend Index (TEDIX) were increased 0.04 and 5.46 percent respectively over the previos month (June 2006).
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