Asia

Stock Market Guide to the Tehran Stock Exchange

The Tehran Stock Exchange was first conceptualized in 1936, with research being carried out with regard to the feasibility of establishing a stock exchange. World War II put the idea on hold, but after the ratification of the Stock Exchange Act in 1967, the Tehran Stock Exchange, or TSE, was officially opened in 1968. During its starting years, the TSE only dealt with Government bonds and specific traded certificates that were backed by the State. In the 1970’s the economy started to change, as more privately owned firms and companies started to expand the market and increased the demand for stocks. The TSE began to witness a growth in activity in relation to the stock markets and the restoration of the economy. The Tehran Stock Exchange is overseen by a council that consists of the Governor of the Central Bank that presides, specialists, representatives of the private sector and state officials. Clearing is assisted by an automated operating system called CDS. Computer services to the TSE, is provided by the TSESC, meaning TSE Services Company. Indices such as TEDPIX, Main Board Index, Secondary Board Index, Wax Index and Industrial Index, are available. Some examples of companies that are listed on the Tehran Stock Exchange include Plastiran, Carbon Iran, Naft Pars, Absal and Varziran.

The industrial sector of Iran plays a vital role in the production
of
vegetable oil, textiles, sugar refining, food processing and metal
fabrications. Even though the agricultural sector of the economy does
not
produce enough crops to sustain the country, it does have agricultural
farms
that contribute dairy products, sugar beets, rice, nuts, grains, wheat,
cotton, wool and fruit.

Iran’s most important export markets are in Spain, Belgium,
Netherlands,
Japan, Germany, France and Italy. Products that are exported include
nuts,
carpets, petroleum, steel, iron, hides and fruit. The major export
product,
estimated at 85 – 90 % of the export market, is oil. Iran imports
products
from the UAE, Germany, Italy, France and the United Kingdom. Imported
products from these countries include the import of refined oil
products,
military supplies, food, pharmaceuticals, technical services, machinery
and
metal works.