Stocks Post Strong Weekly Gains

After five weeks of uninspiring performance, Tehran Stock Exchange and Iran Fara Bourse posted solid gains last week to stand at their respective one-month highs. Both markets recorded upticks for all five days of the week.

TSE’s primary index TEDPIX gained 809 points or 1% during the week that ended June 12 to close at 79,509.6.

The smaller over-the-counter IFB’s benchmark, IFX, added 9.6 points or 1.1% during the same period to stand at 909.2.

Trading at Iran’s stock market starts on Saturday and ends on Wednesday.

> All Eyes on Conclusion of AGMs

The turning point in market movement can be mostly attributed to the reopening of a series of stocks' ticker symbols following the conclusion of their annual general meetings.

Other than their return to trading, companies have now provided investors with new information on their performances.

This upcoming week is expected to be full of news, as the companies that have not held their AGMs will reach the deadline to hold the meetings by the weekend, an official with the Securities and Exchange Brokers Association said.

“Most automakers, refineries, banks and metal producers have to hold their AGMs by July 21. We expect the market to receive a lot of new information,” Behnam Behzadfar added.

Behzadfar noted that investors are expecting good news from most sectors, other than banks.

> Rising Commodity Prices Serve as Tailwind

Various commodity prices were on the rise last week, which buoyed Iranian producers’ shares along the way.

Steel is growing on positive dynamics, as falling exports from top supplier China point to a glut that is already shrinking. Overseas sales of Chinese steel over the first six months of the year dropped by 28% to 41 million tons, according to customs data on Thursday. That is the lowest half-year volume since the first six months of 2014, Bloomberg reported.

Barclays said on Monday “the decline in [China’s] steel inventories, coupled with the recent plan to eliminate substandard steel has fueled a narrative of tightness in supply, resulting in high benchmark steel prices. Coupled with high profitability readings, this has resulted in the market returning to the dynamics seen in 1Q17, favoring yield of cost.”

Iranian steel prices were subsequently on the rise. Hot-rolled coil for exports jumped 9.2% during the week to $490 and cold-rolled coil rose 6.6% to $550.

Mobarakeh Steel Company’s shares rose 4.42% to 1,509 rials during the week. MSC is Iran’s largest flat producer.

Esfahan Steel Company’s shares also jumped 7.08% to 741 rials. ESCO, Iran's largest long producer, has been exporting nearly all its output for a few months now.

Copper prices also rose on Tuesday after a rapid buildup of inventories weighing on the market since late June halted and workers voted to strike at a mine in Chile, raising supply concerns, Reuters reported.

London Metal Exchange’s benchmark copper closed the week at close to $5,900, rising about $100 during the week. Iran’s main copper producer, National Iranian Copper Industries Company, witnessed increased buying on the back of the positive news.

Things have been good for zinc too, as depleting concentrate inventories worldwide have pushed prices up to $2,840. Consequently, Bama Company, Bafgh Mining and Iran Zinc Mines Development Company were on the rise during the week.

> Weekly Trade in Detail

Over 5.46 billion shares valued at $212.5 million were traded on TSE during the past week. The number of traded shares and trade value rose by 138% and 8% compared to the previous week.

TSE’s First Market Index gained 728 points or 1.34% to end at 54,951.2.

The Second Market Index rose by 850 points or 0.48% to close at 177,512.6.

At IFB, more than 1.4 billion securities valued at $244.4 million were traded. The number of traded shares and trade value grew by 13% and 30% compared to the previous week.

IFB’s market cap gained $96.48 million or 0.3% to reach $28.78 billion.

Its First Market witnessed the trading of 164 million securities valued at $8.48million, indicating a 46% and 48% downturn in the number of traded securities and trade value respectively.

About 862 million securities valued at $59.73 million were traded in the Second Market, with the number of traded securities and trade value rising by 158% and 118% week-on-week.