Economy, Business And Markets

Stock Market Report

Stock Market ReportStock Market Report

Tehran Stock Exchange and Iran Fara Bourse extended their gains for the second month, as the upbeat mood surrounding the lifting of nuclear sanctions and waves of agreements with foreign investors drove stocks higher.

Iran emerged from years of economic isolation in January when world powers led by the United States and the European Union lifted sanctions against Tehran in return for temporary curbs on its nuclear works.

TSE’s main index, TEDPIX, surged 6,597 points or 9.28% to end at 77,697.8 points in February.

Over 40 billion shares worth $2.8 billion changed hands during the period, with the number of shares traded and monthly trade value nearly doubling compared to the previous month.

Iran Fara Bourse’s advance was more contained. Its benchmark index, IFX, rose 35 points or 4.4% and finished February around 822 points.

Trade volume was a little lower than the much larger TSE, highlighting the superior liquidity of the over-the-counter market.

According to IFB, over 5.8 billion securities were traded in February worth $2.4 billion.

  A Quite Week

Tehran Stock Exchange’s all-share index TEPDIX shed 142 points or 0.18% during the week that ended March 2 to close at 77,698 points.

More than 7 billion shares valued at $602 million were traded in 530,000 transactions.

The number of shares traded and weekly trade value dropped 41.4% and 32% compared to the prior trading week, respectively. Moreover, the number of transactions also reached 8.2%.

According to TSE data, the First Market Index slipped 322 points to close at 53,686, posting a 0.60% decline compared to last week’s figures, while the Second Market Index jumped 1,016 points to settle at 174,033, with the gauge posting 0.59%.

Moreover, 532,412 participation bonds valued at $15.2 million were traded during the week, recording a 41.4% and 8.2% setback in the number of bonds traded and trade value respectively.

Wood products had the highest weekly increase in shares’ value (30.40%), followed by the manufacture of metal products (7.05%) and agriculture and related services (6.32%)

Iran Fara Bourse’s main index IFX edged down 8.7 points or 1% to end at 822 during the same week.

According to IFB, over 2.5 billion securities valued at $1.3 billion were traded in 129,000 transactions.

The number of shares traded dropped 2%, while weekly trade value surged 221% compared to the prior week’s figures. IFB’s market cap also shrank $190 million or 0.7% to stop at $27.9 billion.

The First Market was host to the trading of 540 million shares valued at $39.1 million, registering a 23% and 30% drop in number of shares traded and weekly trade value respectively.

Close to 950 million shares valued at $68.5 million were transacted at the Second Market, with the number of shares traded and trade value declining 24% and 28% respectively.

Oil products, coke and nuclear fuel sector posted the highest weekly rise in shares’ value ($16.6 million or 20%), tailed by construction and real estate ($14 million or 17%) and chemical products ($13.8 million or 16%).