Tehran Stock Exchange Accounts
for 5% of National Economy
They have also priorities to raise funds which include internal
resources or aggregate profits, handing out bonds and increasing total
Managing director of Tehran Stock Exchange says that the stock market is not
just a secondary market for stock exchange, adding, "Stock markets in other
countries account for a 15-20-percent share of national economy while Tehran
Stock Exchange's share of the national economy stands at 5 percent which
should be increased."
Hassan Ghalibaf-Asl added that transactions on Tehran Stock Exchange in 2010
reached the record figure of 21,000 billion tomans with an average output of
75 percent for the market and very good companies entered the market.
"At the same time, during the first month of the current Iranian calendar
year (started March 21, 2011), a total of 2,500 billion tomans worth of
transactions have been carried out, up by 2.5 times compared to the
corresponding period of the preceding year. This signals a golden time at
the market and an opportunity which should be taken advantage of in the best
possible manner," he added.
The official stated that the stock market was not just a secondary market
for stock exchange, but its more important role is to finance various
companies and projects.
He noted that total increase in capital of companies on the stock market was
4,000 billion tomans last year, which was 1,000 billion tomans in 2009.
Ghalibaf-Asl further noted that although funding the capital market has been
satisfactory, but it still lags behind international figures.
"Stock markets in other countries account for 15-20 percent of their
respective national economies, but the share of Tehran Stock Exchange from
the Iranian national economy stands at 5 percent," he said.
The official noted that funding projects and companies, competitiveness,
high transparency, low rate of funding costs, and possibility of the general
public to avail themselves of the benefits of the markets as the main
features of Tehran Stock Exchange.
Qalibaf-Asl stated that elsewhere in the world funding companies are only
limited to small enterprises, while big enterprises use general methods to
fund their operations.
"They have also priorities to raise funds which include internal resources
or aggregate profits, handing out bonds and increasing total capital," he
The official added that Iranian companies rarely use domestic resources and
aggregate profits for long-term investments, so that, among stock exchanges
which are members of the International Federation of Stock Exchanges,
companies on Tehran Stock Exchange enjoys the highest rate of dividend.
"This has prevented their growth. Therefore, managers should use internal
resources and consider lower profits for division," he added.
Spokesman of Tehran Stock Exchange also stated that the government can
extend tax discounts to companies that use internal resources to develop
companies, on the other hand, should make precise plans for economically
viable investments using the money that they earn so hard," he concluded.