TSE Gauge Ends Month 3.2% Higher

Tehran Stock Exchange’s main index TEDPIX gained 2,543 points or 3.2% during the second month of the current Iranian year (April 21-May 21) to end at a six-month high of 80,123.

The over-the-counter Iran Fara Bourse’s main index, IFX, scored 19 points or 2.1% during the same period to close at an all-time high of 927.

TEDPIX treaded a more or less steady trend during much of the month and hovered around the 80,000 mark. However, it shot up by a whopping 733.40 points or 0.91% on May 20, the day the results of the presidential election became known.

IFX, too, staged a remarkable rise on the same day despite experiencing a more seesaw trend for the past month.

Iran’s Interior Ministry officially announced Hassan Rouhani the winner on Saturday 2:40 p.m. He won 23,549,616 or 57% of all votes. His main challenger Ebrahim Raeisi ranked second with 15,786,449 or 38.5% of the total ballots.

Rouhani’s four years in office is defined by the landmark July 2015 nuclear deal with world powers, aimed at attracting foreign investment and reviving a stagnant economy.

According to market experts, investors welcomed the market stability Rouhani’s reelection is expected to safeguard.

Nonetheless, analysts believe Saturday’s growth will be short-lived, as there is no tangible economic incentive for investors to support it as of yet.

The TSE benchmark only gained 116 points on Sunday and inched down about 70 points the following day. IFX lost 0.22 points or 0.02% on Sunday. It gained 1.38 points or 0.15% the next day.

Market analysts mostly believe Rouhani’s return heralds the continuation of relative economic stability in Iran, but the new administration’s impact on the capital market can be gauged in the second half of this year.

Over 32.46 billion shares valued at $2.18 billion were traded at TSE during the second Iranian month Ordibehesht, as the number of traded shares and monthly trade value rose 97.3% and 121% respectively compared to the previous month.

TSE's First Market Index gained 1,256 points or 2.3% in Ordibehesht to stand at 56,185. The Second Market Index added 8,482 points or 4.9% to reach 180,875.7

At IFB, more than 8.6 billion securities valued at $1.05 billion were traded, indicating a 26% and 20% growth in the number of traded shares and trade value respectively month-on-month.

More than 678 million securities worth $38.86 million were traded in IFB's First Market, registering respective declines of 16% and 17% in the number of traded shares and trade value.

Over 3.03 billion securities changed hands in the Second Market valued at $254.3 million, registering a 5% and 1% decline in traded shares and trade value respectively.