Month of Records at TSE, IFB

Tehran Stock Exchange’s main index TEDPIX gained 6,816 points or 7.5% during the ninth month of the current fiscal year, Azar (Nov. 22-Dec. 21) to end at 95,508.6.

The benchmark index of the over-the-counter market Iran Fara Bourse also scored 70 points or a significant 7.3% during the month to close at 1,012.

Both TEDPIX and IFX recorded their highest monthly growth so far this fiscal year (started March 21) in Azar.

TEDPIX ended Azar only a few points short of its all-time high of 95,600, which record was reached on last Sunday.

In fact, the month’s last two weeks were TSE’s primary boosters, as TEDPIX gained 2.2% and 2.4% in each week respectively. The benchmark index also broke past four 1,000 levels during the 10 trading days.

IFX, too, had an impressive month with massive jumps in the third and fourth weeks. The index is currently at the higher end it has ever been, continuing a record-pushing trend it started in early March, when it first broke past the 900 level.

Over 20.7 billion shares valued at $1.16 billion were traded at TSE over the past month, with the number of traded shares and monthly trade value growing by 10.5% and 19.5% compared to the month before.

TSE's First Market Index gained 5,671 points or 9.1% during the month to stand at 68,146.9. The Second Market Index added 10,127 points or 5.3% to reach 202,256.9.

At IFB, more than 7.73 billion securities valued at $1.39 billion were traded, indicating a 30% and $62% growth in traded shares and trade value.

More than 1.94 billion securities worth $82.3 million were traded in IFB's First Market, registering a 34% uptick in the number of traded shares and 2% drop in trade value. Over 2.98 billion securities changed hands in the Second Market valued at $173.2 million, registering a 31% and 15% growth respectively.

Over 42 million debt securities valued at $949.9 million were traded at IFB, up 90% and 93% in volume and value respectively. Exchange-traded funds’ trade also stood at 266 million valued at $73 million, growing 222% and 206% respectively.

> Leading Industries

Azar’s leading industry in terms of returns was “information and communications,” with the Internet service provider HiWeb as its sole listed company.

The industry’s index grew 30.58% during the month to end at 230.6. Its upsurge came after a near one-month period of lull, during which HiWeb’s shares were frozen by market regulators. The 30.58% growth came only during seven trading days, as it was again barred from trading in late month.

“Metal Ores” index, made up of large-cap miners such as Chadormalu and Golgohar companies, came in second by notching 16.76% of growth to reach 19,317.9. Iron ore producers had a great month in both output and shipments, as China's–the world’s largest consumer of the material–environmental policies and dwindling inventories boosted demand for high-content ore.

With a 12.77% monthly growth, base metals were the third leading industry. Steel, aluminum, lead and zinc have all had a great run so far this year and have continuously boosted producers’ shares such as Mobarakeh Steel Company and National Iranian Copper Industries Company along the way.

Auto producers came next with an 11.21% uptick in their industry index to reach 18,102.2 by the month’s end.

> Stocks Post Highest Returns in 9 Months

Stocks not only recorded the highest return on investment in Azar, but were also the best investment option for the nine months of the year (March 21-Dec. 21). TEDPIX and IFX returns for the nine months stood at 23.8% and 23.6% respectively.

The gold market came second, as the Azadi gold coin recorded a 16.22% ROI for the period, gaining 1,900,000 rials and reaching 13,610,000 rials. This is while gold had a quiet month, growing only 0.66% in Azar.

The forex market was next, as the US dollar started the year at 37,480 rials and reached 41,940 in nine months to record an 11.89% ROI. Azar was slow for the greenback too, as it only gained 2.24% or 920 rials.

Euro, however, was on a much sharper trajectory compared to USD. It was up 22% for the nine-month period to reach 50,170 rials. It had a 3.3% jump against the rial in Azar from the 41,020 it started the month at.

Much of Iranian business transactions are done in euros, considering that US secondary sanctions on banking relations with Iran are still in place, barring banks from working with the country in dollars, although official government trade such as crude exports are still done in USD, giving more prominence to the currency.