TEDPIX Ends Month 3.46 Percent Higher

Tehran Stock Exchange’s main index TEDPIX gained 3,308.4 points or 3.46% during the 10th month of the current Iranian year (Dec. 22-Jan. 20) to end at 98,817.

The benchmark index of the over-the-counter market Iran Fara Bourse inched up 1.72 points or 0.15% during the same month to close at 1,083.51.

Both TEDPIX and IFX have slowed down in growth compared to the month before when they jumped to 7%.

TEDPIX ended the month recovering from losses in the first weeks of the period under review. IFX, however, still lacks 12.33 points to reach its all-time high of 1,105.38 reached on Dec. 25.

The month’s last trading week saw the majority of gains during the period under review as political risks over the fate of the 2015 Iran nuclear deal, otherwise known as Joint Comprehensive Plan of Action, took a backseat and trade surged over positive economic signals.

The main systemic risk muffling trade during the month’s first three trading weeks was US President Donald Trump’s Jan. 12 deadline to continue waiving US nuclear sanctions on Iran as part of the landmark deal reached in 2015.

Trump did eventually extend the waiver of key sanctions, yet warning to Europe that the deal must be fixed to his liking by the time the sanction waiver's deadline is next due in spring.

IFB recorded a steady month-long growth but was still unable to recoup its 72-point drop in the first week.

Over 22 billion shares valued at $1.12 billion were traded at TSE over the past month, with the number of traded shares growing by 6.51% while monthly trade value dropped by 3.44% compared to the month before.

TSE's First Market Index gained 2,429.6 points or 3.56% during the month to stand at 70,547.8. The Second Market Index added 6,637.1 points or 3.28% to reach 208,562.1.

At IFB, more than 7.89 billion securities traded were valued at $926.74 million, indicating a 2.09% growth in traded shares and 33.38% drop in trade value.

> Lowest Monthly ROI

Stocks had the lowest monthly return on investment in the month compared to rival markets. Euro came on top, followed by gold and US dollar.

TSE has trailed euro in ROI so far this year with 28%; and IFB ranked fourth with 20.7%, following euro, TSE and gold.

The rial was quoted at 56,050 against euro on the month’s close, according to Tehran Gold and Jewelry Union. It marked an 11.72% monthly growth for the currency.

The gold market came second, as the Azadi gold coin recorded 7.27% in ROI for the period, gaining 990,000 rials and reaching 14.6 million rials.

The US dollar started the month at 41,941 rials and hit 44,580 on its close to record a 6.29% growth in ROI.

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.

Nevertheless, official government trade such as crude exports are still conducted in USD, giving more prominence to the currency.