TSE’s main index gains 3,000 points in one week
TEHRANTEDPIX, the main index of the Tehran Stock Exchange (TSE), rose 3,000 points, or less than one percent, in the last Iranian calendar week.
The index closed at 1.151 million points on Wednesday (last working day of the week).
Over the past week, indices of Iran Khodro Company, Saipa Company, Isfahan Oil Refining Company, Barekat Pharmaceutical Group (BPG), and Zarmakarun Industrial Company were the most followed indices.
Iranian market analyst Hassan Balazadeh offered three solutions to improve the trend of the stock market and solve some of the problems the market is currently struggling with.
Revising the regulations concerning the free float of shares, determining the ceiling and limitation of initial public offers (IPO), and finally setting up a support fund for certain actions were the solutions proposed by Balazadeh.
According to Balazadeh, one of the issues that can be quickly resolved in the current situation is the issue of floating stocks. On the basis of the law on the capital market, companies in this market must offer at least 10 percent of their shares to public investors. In recent years, the increase in the capital of companies resulting from the revaluation has made them bigger and as a result of this growth, most companies need more cash to support them.
Thus, the regulations in this regard must change in order to oblige these companies to offer more of their shares on the market.
Second, the analyst proposed that for companies that are going to offer their shares for the first time, a cap should be set on the price of the shares and if they exceed the set criteria and the shares go down in the future, the company owner should be obliged to return the money paid to shareholders.
Regarding the support fund, Balazadeh indicated that this fund can be set up with part of the dividend of companies at a general meeting and with the agreement of the shareholders. This way, shareholders can agree to allocate a portion of their dividend to the mentioned fund to support the stock when needed.