Stocks Move to Wipe Hefty Losses After Trump’s Win

During the past week, stocks mainly recouped losses that they incurred on November 9, after Donald Trump was announced as the new US president.

Tehran Stock Exchange's main index gained 857 points or 1.1% during the trading week that ended November 16 to close at 79,268.

TSE trading begins on Saturday and ends on Wednesday.

"Donald Trump's election victory is unleashing shockwaves throughout financial markets, as investors scramble to gauge the impact of the White House campaign that defied the odds," wrote Bloomberg.

The shockwaves also hit Tehran where equities had the largest drop since April 16. TEDPIX took a 1.83% dive, ending the day 1,459 points lower at 78,418.6 points, while the smaller Iran Fara Bourse's benchmark IFX broke its rally with a 2.4% drop, falling 20 points to finish at a 12-day low of 819.19 points.

All industries fell across the board, led by petroleum companies.

The following trading day, however, stocks rebounded as TEDPIX gained 599.10 points or 0.76% to end Saturday trade at 79,010.7. IFX gained 16.21 points or 1.98% to end at 835.4.

In reaction to the market collapse following Trump's win, Shapour Mohammadi, the head of Securities and Exchange Organization, said he believes the result of the US presidential election will have no long-term impact on Iran’s equity markets.

Describing the investors’ panic as “unwarranted”, 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,” he was quoted as saying by Bourse Press.  

Over 5.4 billion shares valued at $572.8 million were traded on TSE during the past week in 350,000 transactions. The number of traded shares and weekly trade value grew by 21% and 69% respectively compared to the previous week.

The First Market Index rose by 665 points or 1.2% to end at 56,037. The Second Market Index added 1,491 points or 0.88% to close at 170,017.

The ‘cement’ group of TSE-listed industries had the highest weekly rise in share value (8.70%). ‘Paper products' (7.94%) and ‘metal products’ (6.59%) came next.

The IFX added 12.6 points or 1.5% during the same week to stand at 831.8.

More than 935 million securities valued at $255.8 million were traded in 92,000 transactions at the Iran Fara Bourse.

The number of traded shares grew by 6%, while weekly trade value shrank by 19% compared to the week before.

IFB's market cap lost $122.1 million or 0.5% to reach $26.7 billion.

IFB’s First Market witnessed the trading of 173 million securities valued at $9.5 million, indicating a 9% rise in the number of traded securities and 5% growth in trade value.

Some 373 million securities valued at $38.8 million were traded in the Second Market, indicating a 1% and 6% drop respectively.

The ‘base metals’ group of IFB-listed industries had the highest weekly rise in share value (30%). ‘Housing and real estate' (8%) and ‘transportation, storage and communications’ (7%) came next.