EghtesadOnline: Data from Iran Fara Bourse, the country's junior stock exchange, indicates that its main index, IFX, posted a 100% returns on investment in the last fiscal that ended on March 20.
Market capitalization showed 75% growth in 241 trading days to reach 2.57 trillion rials ($19 million). The market participants traded an aggregate 170.1 billion securities worth 1,017 trillion rials ($7.8 billion) in over 24.7 million deals, the IFB news portal reported.
IFB contributed 349 trillion rials ($2.7 billion) through initial public offering, Islamic treasury bills, stock subscription and capital increase during the period.
At the end of the previous fiscal, the IFX rose 1,161 points compared to the same period a year before to reach a record 2,258 points and register 106% growth, according to Financial Tribune.
During the period, on average 14.1 billion securities valued at 84.7 trillion rials ($628 million) were traded on a monthly basis. About 19.3 billion securities worth 59.3 trillion rials ($437 million) were traded in the First Market and 68.3 billion securities worth 228.3 trillion rials ($1.6 billion) were exchanged in the Second Market.
Close to 77.9 billion shares worth 170.4 trillion rials ($1.2 billion) were traded in the Base Market of the IFB suggesting 100% and 191% growth respectively, compared to a year before.
The Small and Medium Sized Companies’ Market traded 64 million securities valued at 457 billion rials in the period, indicating 95% and 153% rise in volume and value compared to the earlier year.
Additionally, in the Modern Financial Instruments Market where debt securities, housing securities, and Exchange Traded Fund’s securities are traded, a total of 4.5 billion securities worth 558.2 trillion rials ($4 billion) were exchanged in the previous fiscal.
The value of the first and second markets witnessed respectively 78% and 109% rise compared to the earlier year. Likewise, the Modern Financial Market grew 54% during the period.
Over 97 million securities were subscribed at the IFB during the previous fiscal. The subscriptions includes 66 million securities and bonds, including participatory, Ijara, Morabaha, and certificates of deposit worth 64 trillion rials, and 31 million Exchange Traded Funds securities valued 337 billion rials. IFB subscribed 10 million Manfa’at bonds to help finance 10 trillion rials worth of projects in oil industry during the mentioned period.
Manfa’at is a security which states ownership of a certain service or future profit of a lasting commodity transferred for a certain price. The security can help meet businesses’ immediate needs for liquidity with no access to an end-user to finance operations.
During the preceding year, 111 firms were listed on the first, second, and SMEs market of the IFB and their ticker symbols were shown on IFB bulletin boards. The number of listed companies in the second market and SMEs market increased 17% and 33% compared to a year earlier while the number of listed companies in the first market declined 4%.