TSE Gauge Ends Week Lower

Tehran Stock Exchange’s benchmark index shed 1,259 points or 1.6% during the trading week that ended on November 9 to close at 78,411.

TSE trading begins on Saturday and ends on Wednesday.

Iran’s markets were rocked by Donald Trump’s surprise election as the 45th president of the United States on Wednesday. TSE experienced its largest drop since April 16, as Tehran reacted to the clouds gathering over the nuclear deal with the West.

TEDPIX took a 1.83% dive and ended Wednesday trade 1,459 points lower, while the smaller Iran Fara Bourse broke its rally to with a 2.4% drop or 20 points.

Investors fled equities and piled on foreign currencies and gold in their safe haven search. The US dollar, which took a heavy beating in international markets, rose against the rial by 0.47% to 36,530 rials on Wednesday, as Iranian investors preferred the safety of the world’s reserve currency to the rial.

Furthermore, Tehran’s gold markets followed international developments closely, though volatility was more contained. The Imami bullion coin–the benchmark for Iran’s gold trade–rose 1.35% to 11,355,000 rials on the same day.

Nonetheless, Shapour Mohammadi, the head of Securities and Exchange Organization, believes that the result of the US presidential election will have no long-term impact on Iran’s equity markets.

Describing the investors’ panic as “undue”, he said “they [investors] will eventually realize that the election has no lasting effect and what matters is sound market analysis and long-term investment plans”, Bourse Press reported.

Over 4.5 billion shares valued at $348.8 million were traded at TSE in 342,000 transactions during the past week. The number of traded shares and weekly trade value dropped by 32% and 11% respectively compared to the previous week.

The First Market Index dropped by 677 points or 1.2% to end at 55,372.

The Second Market Index lost 3,920 points or 2.27% to close at 168,526.

The ‘oil extraction’ group of TSE-listed industries had the highest weekly rise in share value (14.08%). ‘Wood products’ (4.26%) and ‘base metals’ (3.27%) came next.

IFX, the over-the-counter Iran Fara Bourse’s main index, lost 23.6 points or 2.8% during the same week to end at 819.2.

More than 883 million securities valued at $323.8 million were traded in 96,000 transactions at IFB. The number of traded shares declined by 33%, while weekly trade value grew by 55% compared with the previous week.

IFB’s market cap lost $158 million or 0.6% to reach $27.9 billion.

IFB’s First Market witnessed the trading of 159 million securities valued at $9.3 million, indicating an 18% setback in the number of traded securities and 11% drop in trade value.

Some 376 million securities valued at $42.5 million were traded in the Second Market, indicating a 30% and 39% drop respectively.

The ‘base metals’ group of IFB-listed industries had the highest weekly rise in share value (20%). ‘Transportation, storage and communications’ (10%) and ‘information and communications’ (9%) came next.