Launch Partners

Launch Partners

Last year saw dips in Iran’s capital markets 

Iran’s capital market performance dipped slightly for its last calendar year that ended on the 19th March 2024, or 29th Esfand 1402, taking into consideration how this Persian nation starts each year on the spring equinox. 

The latest annual report by Securities and Exchange Organization of Iran (SEO) showed the biggest yearly value drop was charted at the Commodities Exchange. 

Iran capital markets overview 

Exchanges Instruments Closing value on 29th Esfand 1402 (19th March 2024) Value in US dollar billions Closing value on 29th Esfand 1401 (20th March 2023) Value in US dollar billions
Tehran Stock Market Equities 76,188,417 1,814.01 72,751,957 1,732.19
Debt securities 876,647 20.87 634,291 15.1
ETFs 2,342,725 55.78 1,826,613 43.49
Total 79,407,789 1,890.66 75,212,861 1,790.78
Farabourse Equities 18,162,790 432.45 18,081,083 430.5
Debt securities 6,335,610 150.85 4,724,418 112.49
ETFs 2,466,745 58.73 2,721,609 64.8
Total 26,965,145 642.03 25,527,110 607.79
Energy Exchange ETFs 471,317 11.22 303,545 7.23
Commodity Exchange ETFs 450,592 10.73 168,137 4
Source: Securities and Exchange Organization of Iran.  
Note: Iran’s calendar year ends a day ahead of the northern spring equinox. 
Original values in billion Iran rials. Official conversion rate of IRR42,000 = US$1 

Total investors who traded on the stock exchanges fell to 1.7 million at the end of the calendar year on the 19th March 2024 compared to 1.92 million as at 20th March 2023.  

The SEO’s report showed this active investor total rose sharply to 2.53 million in the following month of April and reached the year’s high of 3.34 million in May.  

Active investor numbers dropped steadily thereafter to a low of just below a million (990,386) in October 2024 before making a resurgence.  

Over half of total trades were conducted remotely via online platforms, at an average ratio of 2:1 compared to transactions via broker or over-the-counter orders. 

According to the IFN Investor Funds Database, there are currently 461 funds offered in Iran, with 190 being exchange-traded funds (ETFs). 

The total value of foreign investor’s portfolio in the stock markets closed the year at IRR68.04 trillion (US$1.61 billion). 

These capital markets valuations are expected to be revised drastically when the next SEO report is issued as the Central Bank of the Islamic Republic of Iran has floated the daily exchange rate for the Iranian rial to the US dollar as of the 31st May 2024. 

From the previous official exchange rate of US$1 being equivalent to IRR42,000, the rate was IRR369,959 on the 31st May 2024 and dropped further to IRR394,587 on the 30th June 2024. 

This report was produced by IFN Investor editor Francis Nantha & data analyst Arash Malekfard

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