Coming out of a relatively good year, Tehran stocks had a tumultuous month ridden with ambiguities in the first month of the new fiscal year, Farvardin (March 21-April 20).
TSE’s main index TEDPIX shed 766 points or 0.8% during the month to close at 95,524.
Iran Fara Bourse’s benchmark index IFX also dropped 32.85 points or 2.99% to stand at 1,063.8.
Equities had recorded a continuous yet limited growth since the new fiscal year's beginning. Yet the month's third trading week (April 7-11) caused disruption in the lethargic trend: Trade volume grew and stocks' gains intensified as things heated up in the foreign exchange market.
Having lost 30% of its value against the US dollar in the last fiscal year, the rial continued its losing trend up until April 9 as it was unofficially traded at 62,000 against the greenback.
Subsequently, investors rushed to export-oriented stocks such as base metals, while those losing from a weaker rial such as auto producers were sold and left behind.
April 20, 2018 18:23
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Iran: Stocks Affected by Forex Developments
TSE’s main index shed 766 points or 0.8% to close the month at 95,524, as Iran Fara Bourse’s benchmark dropped 32.85 points or 2.99% to 1,063.8
Things are expected to change for the better in the year’s second month, Ordibehesht (April 21-May 21), as new corporate performance reports will be published and the new USD rate as well as euro’s official status sink in
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