TSE, IFB Indices End Trading Week Higher

Dark clouds gathered for stocks all around the world last week. 

The Dow Jones Industrial average had its largest one-day fall on record and erased all gains made so far this year on Monday, and other global stocks followed suit. 

Iranian stocks, however, have had no severe reactions so far. Their resilience is set to be tested this week, as equities’ downfall continues.

TSE’s main index TEDPIX gained 166 points or 0.2% during the week that ended on Feb. 7 to reach 98,299.7.

The smaller over-the-counter exchange market Iran Fara Bourse’s benchmark index IFX added 14.4 points or 1.3% during the week to stand at 1,103.8.

For several weeks, economists and analysts have warned that inflation in major economies could increase this year beyond the 2-3% that central banks believe is good for developed countries.

Official US figures turned those concerns into a selloff last Friday, after they showed average wage rises in the US had reached 2.9%. The data increased fears that shop prices would soon rise further, increasing the pressure for high interest rates to cal the economy down.

Investors then bolted at the prospect of an era of cheap money, which encourages consumers and companies to spend, coming to an end.

Over the past month, several members of the US central bank, the Federal Reserve, have argued that three 0.25% interest rate rises scheduled for this year could become four or five, the Guardian reported.

Donya-e-Eghtesad argues that the bulwark protecting Iranian stocks so far is the stocks’ growth being based on strong retrospective corporate data, with still-strong market fundamentals supporting it.

Despite the good run Iranian stocks have had, traders seemingly avoided creating a bubble. This indicates that even if the worst comes to pass, an Iranian rout would be less pronounced than others around the world. 

 Weekly Trade in Detail

Over 5.48 billion shares valued at $306.12 million were traded on TSE last week. The number of traded shares and trade value rose by 28% and 2% respectively compared to the previous week.

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

TSE’s First Market Index gained 321 points or 0.5% to end at 69,770. The Second Market Index dropped by 710 points or 0.3% to close at 209,619.

And at IFB, over 1.66 billion securities valued at $219.97 million were traded, with the number of traded shares dropping by 7% while trade value grew 35% compared to the previous week.

IFB’s market cap, on the other hand, gained $640.7 million or 2.3% to reach $28.67 billion. 

Its First Market witnessed the trading of 354 million securities valued at $14.53 million, indicating a 20% drop in trade volume and a 227% surge in trade value.

About 261 million securities valued at $31.8 million were traded in the Second Market, with the number of traded securities and trade value shrinking by 20% and 19% week-on-week respectively.

Over 7 million debt securities valued at $126 million were also traded at IFB, surging 120% and 115% in the number of bonds traded and their value respectively.

Exchange-traded funds, however, dropped 24% in trade number and 5% in value to reach 53 million worth $15.63 million.

Housing mortgage rights’ trade also recorded growth, as it reached 37,000 securities worth $5.59 million, up 10% and 10% respectively.

 Forex, Gold Zoom Past Stocks in Weekly Gains

The stock market was no match against foreign exchange and gold markets in terms of returns last week.

Euro came on top followed by gold, USD, IFB and TSE.

The rankings so far this fiscal year (March 2017-18) slightly shifted over last week’s developments, with euro coming first, followed by gold, TSE, IFB and USD.

TSE posted a 27% gain so far this year, while the figure stood at 26.1% for IFB. 

The rial was quoted at 60,620 against euro by Thursday’s close. It marked a 2.83% growth for the European currency.

Euro’s gains so far this year reached 47.42%, having started the year at 41,120. 

USD gained 1.67% against the rial this week to 47,250. The dollar’s gain so far this year reached 26.06%, having started the year at 37,480.

Bahar Azadi gold coin grew 1.98% last week to 14.9 million rials. Its gain so far this year stood at 27.24%.