Iran's sixth provincial stock market and the eighth nationwide was inaugurated in the central city of Yazd. Economy Minister Seyyed Safdar Hosseini, Secretary General of the Stock Exchanges Hossein Abdeh-Tabrizi, Yazd governor general as well as several top provincial officials attended the inaugural ceremony, Pars Investment reported.
Addressing the ceremony, Safdar Hosseini said investors in Yazd and adjoining areas will no longer have to travel long distances to partake in stock market transactions.
"Stock exchanges are crucial in absorbing capital and public deposits and channeling them to the financial market." According to Hosseini, all provinces will have their own stock markets until the end of the government's term in office. "Given that the public is less familiar with rules and regulations as well as facilities and incentives of financial market, it is important that stock markets constantly attract small deposits through supportive policies." The minister said presently almost one million people are active in the stock market; which is an extremely low figure for a country of 65 million people of which at least 10 million are potential investors." He said more than 48,000 billion Rials (US$ 5.6 billion) worth of stocks was traded in the financial market in the first half of the current year (started March 20), up from 16,000 billion Rials (US$ 1.9 billion) in the same period last year.
Speaking at the same gathering, Abdeh-Tabrizi said reduction in investment risks and directing unproductive capital into productive economic sectors are two direct outcomes of regional stock markets. "Such places stimulate economic growth." Legal framework for establishment of regional stock markets was for the first time created in the Second Five-Year Economic Development Plan (1994-1999), aimed at further expanding of the activities of the stock exchange.
The Yazd stock market is sixth after those in Mashhad, Tabriz, Kerman, Isfahan and Ahvaz. The government says it plans to set up additional stock exchanges in Sari, Rasht, Zahedan and Urumieh.
... Payvand News - 10/25/04 ... --