13
April 2020
April 2020
Contents
Stock Market Indices .................................................................................................... 3
TSE and IFB Market Capitalization ................................................................................ 4
Industries Market Capitalization .................................................................................. 5
Exchanges' Trading Statistics ........................................................................................ 6
Instruments' Trading Statistics ..................................................................................... 7
Share of Institutional and Individual Investors in Trading Value ................................. 8
Institutional and Individual Transactions ..................................................................... 8
Sukuk ............................................................................................................................. 9
Number of Listed and Unlisted Companies .................................................................. 9
Initial Public Offerings................................................................................................. 10
Abbreviation
IFB Iran Fara Bourse
IFX Iran Fara Bourse Index
IME Iran Mercantile Exchange
IRENEX Iran Energy Exchange
SPS Standard Parallel Salam
TEDPIX Tehran Dividend and Price Index
TRI Total Return Index
TSE Tehran Stock Exchange
Iran Capital Market Insight 3
Stock Market Indices
The end of month figure of Iran stock market major indices including the TSE's (TEDPIX) and
the IFB's total return index (IFX) is compared with that of the previous month in Table 1.
Table 1: Stock Market Indices
Change (%) March 2020 April 2020 Index
34.5% 512,900 690,037 TEDPIX
30.2% 6,591 8,583 IFX
The past year's trend of the indices is illustrated in the following figure.
1,000
2,250
3,500
4,750
6,000
7,250
8,500
9,750
85,000
285,000
485,000
685,000
885,000
2019
/04/
27
2019
/05/
05
2019
/05/
13
2019
/05/
21
2019
/05/
29
2019
/06/
06
2019
/06/
14
2019
/06/
22
2019
/06/
30
2019
/07/
08
2019
/07/
16
2019
/07/
24
2019
/08/
01
2019
/08/
09
2019
/08/
17
2019
/08/
25
2019
/09/
02
2019
/09/
10
2019
/09/
18
2019
/09/
26
2019
/10/
04
2019
/10/
12
2019
/10/
20
2019
/10/
28
2019
/11/
05
2019
/11/
13
2019
/11/
21
2019
/11/
29
2019
/12/
07
2019
/12/
15
2019
/12/
23
2019
/12/
31
2020
/01/
08
2020
/01/
16
2020
/01/
24
2020
/02/
01
2020
/02/
09
2020
/02/
17
2020
/02/
25
2020
/03/
04
2020
/03/
12
2020
/03/
20
2020
/03/
28
2020
/04/
05
2020
/04/
13
Figure 1: Major Indices
TEDPIX - (Left Axis) IFX - (Right Axis)
Iran Capital Market Insight 4
In addition, the performance (annual return in percent) of TEDPIX is compared with MSCI
Emerging Market TRI and S&P/OIC COMCEC 50 SHARIAH TRI in figure (2).
MSCI Emerging Market TRI: The index includes securities from 23 countries; however, it excludes stocks from
emerging and frontier economies.
COMCEC: The S&P/OIC COMCEC 50 Shariah is designed to provide investors with a Shariah-compliant
benchmark that measures the performance of leading companies from the Organization of Islamic Cooperation
(OIC) member states.
TSE and IFB Market Capitalization
Share of the IFB and the TSE market capitalization in comparison with the end of April is demonstrated below. The IFB is younger and smaller; yet, has differentiated itself in hosting state-of-the-art financial instruments.
-100%
-50%
0%
50%
100%
150%
200%
250%
300%
4/2
2/2
019
5/2
/201
9
5/1
2/2
019
5/2
2/2
019
6/1
/201
9
6/1
1/2
019
6/2
1/2
019
7/1
/201
9
7/1
1/2
019
7/2
1/2
019
7/3
1/2
019
8/1
0/2
019
8/2
0/2
019
8/3
0/2
019
9/9
/201
9
9/1
9/2
019
9/2
9/2
019
10
/9/2
019
10
/19/2
01
9
10
/29/2
01
9
11
/8/2
019
11
/18/2
01
9
11
/28/2
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9
12
/8/2
019
12
/18/2
01
9
12
/28/2
01
9
1/7
/202
0
1/1
7/2
020
1/2
7/2
020
2/6
/202
0
2/1
6/2
020
2/2
6/2
020
3/7
/202
0
3/1
7/2
020
3/2
7/2
020
4/6
/202
0
4/1
6/2
020
Figure 2: TEDPIX, MSCI, COMCEC Annual Returns in a Window
TEDPIX MSCI COMCEC
18,731,466
25,930,152
5,835,080
7,829,211
0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000
Mar-20
Apr-20
Billion Rials
Figure 3: TSE and IFB Market Capitalization Comparison
Tehran Stock Exchange (TSE) Iran Fara Bourse (IFB)
Iran Capital Market Insight 5
Industries Market Capitalization
Tehran Stock Exchange and Iran Fara Bourse
The break-down of top industries' market capitalization in the aggregate of the IFB and the
TSE is depicted in the following figure.
Manufacture of chemical products,
20.8%
Manufacture of basic metals , 13.7%
Mining of metal ores, 7.1%
Banking and financial
institutions, 6.6%
Multidisciplinary industrial activities,
6.1%
Manufacture of coke, refined
petroleum products and nuclear fuel,
5.0%
Pharmaceutical products, 4.0%
investment firms, 3.5%
Post and telecommunication
s, 3.2%
Electricity, gas, steam and steam
supply, 2.8%
others, 27.1%
FIGURE 4: TOP 10 INDUSTRIES
Iran Capital Market Insight 6
Exchanges' Trading Statistics The value of trades for each exchange is depicted in the following table.
Table 2: Value of trades for each exchange
Exchange Securities
Trade Value (Billion Rials) Percent change
Apr-20 Mar-20 Apr-19 compared to
previous month
compared to previous year
Tehran Stock Exchange
Stock 983,714 878,832 150,238 11.93% 554.77%
Sukuk 5,375 22,011 765 -75.58% 602.73%
ETFs 29,269 60,127 8,842 -51.32% 231.01%
Iran Fara Bourse
Stock 506,850 424,104 50,259 19.51% 908.47%
Sukuk 49,006 197,294 19,353 -75.16% 153.23%
ETFs 24,452 31,793 6,731 -23.09% 263.28%
IME
Physical Market
76,621 142,265 73,149 -46.14% 4.75%
ETFs 2277 2496 1,818 -8.77% 25.26%
IRENEX
Physical Market
31,725 58,646 5,492 -45.90% 477.66%
ETFs 293 0 -
Grand Total 1,709,582 1,817,567 316,647 -5.94% 439.90%
Daily Average 100,564 95,661 19,790 5.12% 408.14%
The trading value of each exchange is depicted in the following figures.
0
380,000
760,000
1,140,000
1,520,000
1,900,000
2,280,000
Bill
ion
Ria
ls
May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20
IRENEX 16,919 9,907 13,373 8,485 44,953 23,661 35,440 91,468 53,804 22,678 58,646 32,018
IME 142,062 95,924 100,381 84,648 103,342 110,054 108,697 136,792 135,364 156,293 144,761 78,898
IFB 146,337 146,401 180,231 181,651 209,414 259,988 169,887 331,607 378,909 496,691 653,190 580,308
TSE 295,986 267,313 274,430 215,583 368,222 434,315 245,782 431,869 643,464 826,430 960,970 1,018,35
Figure5: Annual trend of total transaction value by exchanges
Iran Capital Market Insight 7
Instruments' Trading Statistics
144,761
-
49
72,388
69,828
2,496
78,898
-
65
35,561
40,995
2,277
0 50,000 100,000 150,000
Total
Mineral
Side market
Metal
Oil & Petrochemicals
ETF
Figure 6: IME Trade Value of Different Groups Apr Mar
Billion Rials
58,646
240
-
58,406
31,725
198
293
31,527
0 15000 30000 45000 60000 75000 90000
Total
Electricity
ETF
Fuel Oil
Figure 7: IRENEX Trade Value of Different Groups Apr Mar
Billion Rials
Stock87%
Debt3%
ETFs3%
Physical Markets
7%
Figure 8: Transactions value by type of securities
Iran Capital Market Insight 8
Share of Institutional and Individual Investors in Trading Value
Figure 9 reveals the proportion of individual and institutional investors in the total market
trading value of TSE an IFB.
Institutional and Individual Transactions
Institutional and Individual contribution for each category of instruments in TSE and IFB is
demonstrated in the following figure.
27.9%
72.1%
Figure 9: Investors' Proportion in Trade Value of Four Exchanges
Institutional 445,597 Billion
RialsIndividual 1,153,069
Billion Rials
76.0%
27.4%
9.2%
24.0%
72.6%
90.8%
Stocks ETFs Sukuk
Figure 10: Investors Trading Value of Securities
Share of Individual transactions value Share of Institutional transactions value
Iran Capital Market Insight 9
Sukuk Outstanding Sukuk The outstanding value of each Islamic securities (Sukuk) is presented in the following figures. It is noteworthy that all instruments in the Iran capital market are Shariah-compliant.
Number of Listed and Unlisted Companies The number of listed and registered companies on the TSE and the IFB are presented in the following table.
Table 3: Number of Listed and Registered Companies on TSE and IFB
April 2020
335 Listed Companies in the TSE
124 Listed Companies in the IFB
173 Unlisted Companies in the IFB
Governmental
82.7%
Municipal3.8%
Corporative13.5%
Figure 11: Outstanding Value of Each Type of Sukuk Issuers
42.51%
10.26%
0.32%0.01%6.16%
11.31%
9.40%
20.03%
Figure 12: Outstanding Value of Each Type of Sukuk
Islamic Treasury Bills
Governmental IjarahSukukMortgages
Istisna Sukuk
Parallel Salam Sukuk
GovernmentalMurabahah SukukGovernmentalMusharaka
916,191
866,544884,337 896,423 896,423
898,3911,028,452
1,007,539967,179
980,1791,160,189
1,247,289
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
Bill
ion
Ria
ls
Figure 13: Annual trend of Outstanding Value by the nature of the issuer's securities
Governmental Municipal Corporative
Iran Capital Market Insight 10
Initial Public Offerings The trend of the number of initial public offerings in the TSE and the IFB is presented in the
following figure.
The detail of IPOs in the TSE and the IFB is shown in the following table.
Table 4: detail of IPOs
Offering Date
No.Shares Ticker Company Name
Industry Exchange
2020/04/15 80.000.000.000 TAMN Social Sec Inv Diversified Industrials (Holdings)
TSE
2020/04/14 2.519.041.764 OECP Oil Engr. Constr
Extraction of Oil, Gas and Ancillary
Services Except Exploration
IFB - Unlisted
2020/04/08 15.000.000.000 STIZ Saba Tamin
Inv Investment Companies
IFB - Listed
1 1
2
1 1
0 0
1
2
1
1 1
2
2
1
2
1
4
3
1
2
1
4
1
1
0
1
2
3
4
5
6
Figure 14: Annual trend of IPO on the TSE and the IFB
TSE IFB-Listed IFB-Unlisted
Iran Capital Market Insight 11
SEO New Chairman Appointed
In the last meeting of the Securities and Exchange High Council, Dr. Hasan Ghalibaf Asl was
appointed as the new Chairman of the SEO. Having served as the CEO of the Tehran Stock
Exchange (TSE) for around 10 years and also as a top manager of different financial
institutions, Dr. Ghalibaf holds PhD in finance and is a faculty member of a well-known
university in Tehran. The capital market in Iran is familiar with the good performance of Dr.
Ghalibaf and his appointment welcomes a new promising future for the entire participants in
the market. One of the outstanding and noticeable features of his professional background is
the significance he has attached to international activities. To name but a few, he was one of
the most active members of FEAS and a member of the board of this association for several
terms. During his presence in the TSE, he signed quite many MoUs with their international
counterparts and created a fruitful linkage between the TSE and international markets.
All Brokerage Firms Can Own Private Oms Platforms
Based on the Directive approved by the SEO Board of Directors, all brokerage companies may
now request to obtain the license for private OMS platform.
This Directive is fully compatible with national and international standards and other capital
market regulations and requirements, while all risks, challenges and expertise in this field and
during the past decade have been considered to compile this Directive. The SEO may evaluate
the applicants in maximum 20 days.
All brokerage companies may either design, implement and support this infrastructure
through their technical forces; or establish a subsidiary IT company. Needless to say that, a
specialized IT company may have great potential to provide more diversified, more secure
and better quality services to their clients.
Executive Mechanism For Offering Remaining Stocks Of State-
Owned Companies
According to the Budget Act of current Iranian year (started March 21, 2020) and also based
on Article 44 of the Constitutional Law, the executive mechanism to offer the remaining
stocks of state-owned companies via the capital market has been approved by the Securities
and Exchange High Council. This enactment has been presented to the First Vice President by
the Minister of Finance and Economic Affairs who is the Chairman of High Council as well.
The SEO Chairman said that based on the approved mechanism, all remaining stocks of state-
owned companies listed on the Tehran Stock Exchange (TSE) and Iran Fara Bourse (IFB) will
be offered to public in two stages at a 20 to 25 percent discount.
Iran Capital Market Insight 12
Dr. Mohammadi continued that for the first phase, these stocks would be offered in the form
of ETF. Should any stocks remain; the second phase will be offered based on book-building
method to each Iranian national identity code.
Transaction Commission Cut For Etfs
In order to encourage indirect investment and let the new investors enjoy less risky
investments, the SEO reduced the transaction commission of ETFs. This act is in line with
investor protection and education, which are among the top priorities of the SEO. This way,
new investors, particularly disqualified ones, will be directed to the investment in fixed-
income products, accordingly, will not be exposed to potential risks of variable-income
products.
The details of this decision are as follows:
1. The maximum commission of the Tehran Stock Exchange (TSE), Iran Fara Bourse (IFB),
Tehran Securities Exchange Technology Management Company (TSETMC), Central Securities
Depository of Iran (CSDI) and brokerage firms by all investment funds (except for investment
funds exclusive for market-making) from securities transactions by all investment funds is
equal to maximum 25% of the commission of ordinary securities transaction.
2. The maximum commission the for Tehran Stock Exchange (TSE), Iran Fara Bourse (IFB),
Tehran Securities Exchange Technology Management Company (TSETMC), Central Securities
Depository of Iran (CSDI) and brokerage firms for transactions of the units of investment
funds is equal to maximum 25% of the commission of ordinary securities transaction.
Announcement: IPOs On Schedule
The SEO has announced that IPOs will not have any halts and be on the agenda of the market
regardless of the rampant Covid-19 and its impact on the market. Investors shall not follow
any rumors in this regard.
Announcement: Seo Scrutiny Of Scam And Frauds
One of the main side effects of Covid-19 is spreading rumors on social media with the purpose
of misleading investors to make affected and emotional decisions which may end in mis-
buying or mis-selling. The Office for Whistle-blowers in the SEO has been taking a close tab
on any channels or individuals perpetrating scams or frauds based on the rules and
regulations of the market.
Iran Capital Market Insight 13
At the end of April 2020, the market capitalization reached 33,759,363 billion IR, which represents 27% growth compare with the previous month .
The TSE's total return index (TEDPIX) at the end of one-month trading session in April 2020 increased by 34.5% and touched 690,037, while the IFB's total return index (IFX) reached 8,583, which demonstrates a 30.2% growth.
The total trading value of four exchanges (TSE, IFB, IME, and IRENEX) amounted to 1,709,582 billion IR in April 2020, which shows 6% decries comparing to the last month.
