Economy, Business And Markets

IFB Sees Dramatic Surge in Trade

IFB Sees Dramatic Surge in Trade IFB Sees Dramatic Surge in Trade

More than 3.05 billion securities changed hands in 84,000 transactions at Iran Fara Bourse during the working week that ended May 27, valued at a total of $739.3 million to record an unprecedented surge in both trade volume and value respectively.

According to the IFB report, trade volume and value registered 281 and 259 percent growth respectively compared with the same period last week, to lift the IFB's weekly market cap to about $27 billion. However, the IFB's main index, IFX, retreated 1.7 percent to stand at 715.

Amir Kabir Petrochemical Complex offered some 500 million of its shares, valued at about $144,000 to the public in block trade, registering an 11-month record high in daily trade.

The IFB's First Market witnessed the transaction of 142 million securities, priced at $12.69 million. The Secondary Market recorded the trade of 797 million securities, valued at around $26.2 million. The Base Market filed the trade of 2,109 million securities, valued at $540.4 million. The Modern Financial Instrument Market recorded the trade of 10 million securities, worth around $160 million.

The First Market posted 231 and 205 percent hike; the Secondary Market recorded 182 and 42 percent growth and the Base Market registered 348 and 3,477 percent increase in trade volume and value respectively.

Oil group of commodities with 15 percent growth in trade volume in both First and Secondary markets extended its bullishness and topped other commodities. Base metals and mass construction with 15 and 11 percent growth, took the second and third place among leading industries listed at IFB.

>TSE Wobbles Amid Lingering Jitters

The volatilities at Tehran Stock Exchange amid ongoing recession and all-embracing slump facing listed industries at the equity market impeded any tangible uptrend at the TSE, and weighed on the TEDPIX to wrap up the working week ending May 27 in red.

According to TSE data, the overall index slipped 301 points or 0.47 percent to accumulate more losses and settle at 63,402.1. The first market index lost 349 points or 0.76 percent to stand at 45,726.3. The second market index, as the only gainer index, notched up 202 points or 0.15 percent to 130,943. The free float index tumbled 518 points or 0.71 percent to 72,634.3. The industry index lost 118 points or 0.23 percent to 52,208. The financial index plunged 2,295 points or 1.68 percent to end at 124,411.5, and the blue-chip index also ticked down 13 points or 0.45 percent to 2,905.9.

Excluding the financial index, all indices have gained since the beginning of the Iranian year, which started March 21. However, nearly 90 percent of the gains piled up at the beginning of the year after the announcement of the preliminary nuclear deal between Iran and the P5+1 has evaporated. TSE's gauge amassed massive gains over its bullish trend between March 25 and May 6, but ambiguities, investors' overreaction and teetering economy evaporated almost 10.5 percent of the gains.

Close to 1.82 trillion shares changed hands during the week, valued at $130.8 million, to post 17.7 and 36.7 percent growth in trade volume and value respectively.

Fixed-income participatory bonds registered a massive weekly surge, with 1.29 million bonds changing hands, valued around $39.4 million to post 1,857 and 1,888 percent growth in trade volume and value respectively.

Stocks are undervalued, with some of the previously high-yielding ones being traded below their intrinsic values. Nearly all market analysts believe once a nuclear deal is reached, a massive hike in stock prices is inevitable.