TSE Sinks to 7-Week Low
TSE Sinks to 7-Week Low

TSE Sinks to 7-Week Low

Tehran Stock Exchange’s benchmark ended the week down 0.3% at 76,455.40 points, as Iran Fara Bourse’s sank 0.3% and closed at 799.97 points on Wednesday
The government started the three-day offering of Salaf contracts for wheat on Wednesday on Iran Mercantile Exchange to finance its wheat purchase from farmers

TSE Sinks to 7-Week Low

Bears continued their reign over equity markets in Tehran, driving all major stock indices lower for the week. All major industries faced losses for the week while liquidity dried up even more than before.
Poor economic outlook and speculation about the return of double-digit inflation, combined with the crisis in banking and manufacturing sectors, are sapping share prices.
Meanwhile, escalating tensions with the United States Navy in the Persian Gulf have added an element of political risk to calculations. These tensions have undermined hopes of convincing the US to ease some of its non-nuclear sanctions against Iran. These sanctions, coupled with lax anti-money laundering regimen of Iranian Banks, are sabotaging dealings between Iranian banks and their international counterparts and, as a result, keeping foreign investment in Iran at a minimum.
Tehran Stock Exchange’s benchmark ended the week down 0.3% at 76,455.40 points, just off a seven-week low. This was the fifth straight week of losses for the TEDPIX. Trade volume, which had hit its lowest in nine months last week, dropped a further 23.8% for the week.

> Stock Trading Halved on IFB

Things were no better on Iran Fara Bourse over-the-counter market where stock trading halved as buyers fled the market.
The market’s main index sank 0.3% and closed at 799.97 points on Wednesday. The IFX has fallen for three straight weeks.
A surge in bond trading brought the market’s total trade volume up 14% to 4.6 trillion rials from the prior week, negating the effects of the sharp drop in equity trading. Bond trading soared 80%, to 2.2 trillion rials for the week.
Construction companies were the most traded group on the IFB this week. Fifteen percent of trading were in construction stocks that only constituted 2% of the market. Conversely, the market’s largest group—chemical producers—that dominates trading, was only the eighth most traded group with just 4% of trading. The group makes up over a fifth of the market.
The US dollar stayed unchanged at 35,800 rials. The greenback’s exchange rate against the rial has risen steadily for the past seven months. The US currency has tested the 35,850-rial resistance level continuously for the past three weeks.

 Bells and Whistles

The chief executive of the Central Securities Depository of Iran and the Securities and Exchange Organization’s deputy for foreign investment used the gloomy week as an opportunity to travel to Athens to talk of boosting bilateral ties. The two ceremonially rang ATHEXCSD’s opening bell.
The chief executive of Iran Mercantile Exchange said the SEO is working on a revision of Iran’s financial markets law that was passed a decade ago in a letter published by Securities and Exchange News Agency. It is uncertain when these intentions will turn into action, however.
While investors selling shares on the rare occasion of finding buyers, demand for fixed-income securities is high, especially among institutional investors. This comes mainly from a shortage of bond offerings and attractive rates on them.
Capitalizing on this demand, the government started the three-day offering of Salaf contracts for wheat on Wednesday on Iran Mercantile Exchange to finance its wheat purchase from farmers this year. The three-day offering will resume on Saturday.
Salaf is an Islamic security similar to futures contracts used to forward sell an underlying commodity with a predetermined interest for the period.
Government Trading Corporation of Iran is offering 32 million wheat Salaf contracts hoping to raise 26.5 trillion rials ($745.2 million at market exchange rate) from the sale. The company will use the money to buy wheat from farmers under its guaranteed purchase scheme.

Short URL : https://goo.gl/5Tuk9R
  1. https://goo.gl/oV4JCl
  • https://goo.gl/K7JEDG
  • https://goo.gl/K96OSe
  • https://goo.gl/wj1a0B
  • https://goo.gl/CeWTHS

You can also read ...

Massoud Karbasian (1R), sitting across his Indonesian counterpart Sri Mulyani Indrawati in Washington, DC.  
Iranian Minister of Economic Affairs and Finance Masoud...
The first train to connect China and Iran arrived in Tehran in February 2016 loaded with Chinese goods, reviving the ancient Silk Road.
China is calling on the United States to preserve the Iran...
TCCIM Director Masoud Khansari (C) made the keynote speech at the latest gathering of the influential business body on Oct. 17. (Photo: Saeed Ameri)
Tehran Chamber of Commerce, Industries, Mines and Agriculture...
All devices that support Wi-Fi are most likely affected and users may want to be wary of using Wi-Fi at all until patches are widely rolled out
One more vulnerability that is now affecting practically...
NSFund Helping Knowledge-Based Firms Growth, Export Agenda
Government-backed Innovation and Prosperity Fund (NSFund) has...
Int’l Animal Feed Producers to Visit
Board members of the International Feed Industry Federation...
$7.5b in Loans to for Industries
The Iranian government is extending financial support to...
92% Rise in N. Khorasan Exports Value
More than 310,000 tons of goods worth around $61.5 million...