Tehran Stock Exchange - Performance

Performance

2000–2004: The performance of the TSE has had no correlation with major exchanges or emerging stock markets over the past few years and not even with the oil price. While the overall indices of the world’s five major exchanges – New York, London, Paris, Frankfurt and Tokyo plunged by 40 to 70% between March 2001 and April 2003, the TSE index (Tepix) bucked the trend by going up nearly 80%.

2005–2006: In December, 2005, 419 companies with a market capitalization of IRR 32,741.7 million were listed in TSE. The TSE has had an exceptional performance over the past 5 years. In general, the stock market in 2005/06 shed value as it is manifested by the decline of its major stock price indices. The TSE price index (TSPIX) at the end of 2005/06, declined by 21.9%, while the Financial Sector Index, and the Industrial Index, declined by, 38.8%, 19.4% respectively, and the Dividend Index gained 11.8%, mostly due to a reported 100 billion USD capital flight from the country because of the international dispute surrounding the Iranian nuclear programme.

2007: The market bottomed in June 2007 mainly because of the renewed privatization drive in the Iranian economy.

2008: The TSE was not directly affected by the international financial turmoil in 2008, but following the global reduction in prices of copper and steel, the bourse index dropped by 12.5 percent, as most of the companies listed on the exchange are producers of such commodities. TSE experienced an 11% growth at the end of 2008 and ranked second in the world in terms of increase in the volume of trade after Luxembourg’s Bourse.

2009: The TSE sank about 40% in value between August 2008 and March 2009, influenced by falling oil prices and declining markets in other parts of the world. As of August 1, 2009 it has recovered by more than 10%. During Iranian year 2009/10, the value of capital market was around $20 billion. Some 3 million trade exchanges were made, pushing up the index to 12,500 units from the previous 8,000 units.

2010: In the first month of Iranian 2010 (March 20 – April 21, 2010), the index hit the 14,000 unit mark, up from the previous 12,500, showing 12 percent growth. The value of one month's trading transactions exceeded $1 billion against the previous year's corresponding period of $95 million. Tehran Stock Exchange bourse index from June 2009 to 2010 grew 55 percent and the value of TSE's total market capitalization went up about 33 percent, to over $71 billion.

On August 2, 2010, the TSE main index (TEPIX) reached a record level of 16,056 points, despite US-sponsored sanctions against Iran. Thus, TEDPIX became the world’s second-best performing equity index. Factors such as the global spike in oil and metal prices, government support for industries and oil sectors as well as the growth of stock market liquidity flow contributed to the boom. Experts commented that the growth was also partly due to a government decision to sell off 20 percent of its equity in two major automakers. Given the relative low market valuation of TSE stocks in 2010, the upward trend was expected to continue over the long run, rather than being a bubble. TEPIX reached a new record on September 18, 2010, when it hit 18,658, up from 11,295 at the start of the year. As of December 2010, the TSE index rose about 64 percent since the start of 2010. The Tehran Stock Exchange has been ranked as the best bourse index in Europe, Africa and Middle East in 2010 in terms of performance of the main index.

2011: On February 1, 2011, TEPIX and total market value reached an all-time high of 21,349 and USD 100 billion respectively. An alleged $200 million investments by Iranian expats also contributed to this increase.

On April 9, 2011, TSE's main index (TEPIX) hit a new all-time record high at 26,222 over a boost from the stocks of metal and shipping industries. According to the World Federation of Exchanges (WFE), TSE had the best performance among WFE member exchanges from May 2010 to May 2011. With a staggering 79% growth rate in its main index, the TSE ranked 1st in WFE’s “Broad Stock Index Performance” category followed by the Colombo and Lima Stock Exchanges with 75.1% and 48.9% rates respectively.

Overall, Tehran stock exchange posted the second highest gains in global markets in 2011 (TEPIX up 29.6%). Meanwhile the German's DAX (DAX INDEX) lost 16.5% due and the FTSE 100(UKX INDEX) performed poorly, down 6.7%. Stock markets of emerging economies, like Brazil's Brazil Bovespa Index (IBOV INDEX), shed 18.4%. Equally, MENA stock markets had a poor year in 2011, reflecting both the political turbulence across the region and the battering suffered by most global markets as a result of the euro zone crisis and the increasingly bearish outlook for the global economy.

2012: TSE’s overall index hit a new record high in October 2012 surpassing 31,000 points. Export-oriented companies have been favoured because of a sharp decline in the value of the Iranian rial over 2012.