After weeks of downbeat performance, President Hassan Rouhani’s dovish signals of a bright outlook for the equity market in the not-too-distant future coupled with the endorsement of the July 14 nuclear deal by Iran’s Parliament prompted investors at Tehran Stock Exchange to shore up their portfolios over the past week.
This sent the benchmark up 576 points or 0.95% compared to the previous trading week to end at 61,973.3.
During the week that ended October 14, the First Market Index gained 556 points or 1.31% to end at 43,089. The Second Market Index advanced 446 points or 0.33% to close at 137,147.
More than 2.072 billion shares and rights offerings changed hands in 144,000 transactions valued at $118.8 million to register 20%, 8% and 35.6% growth in trade volume, number of transactions and trade value respectively.
Furthermore, 215,023 participation bonds worth $6.23 million sold out to record 32.7% pullback in trade volume and value.
The oil and gas extraction, mass construction and automotive sectors did especially well during the week.
On Tuesday, President Rouhani unveiled the fundamentals of the government’s new economic policies for the second half of the current Iranian year (ending March 19, 2016). A new package of measures announced by the president will see the reserve ratio of banks decrease from 13% to 10% to help them overcome the ongoing credit crunch.
IFB Follows Suit
At Iran Fara Bourse, more than 504 million securities worth $73.73 million were traded during the same week to post a 5% rise and 34% fall in trade volume and value respectively.
The benchmark IFX rose 2% to settle at 701. IFB’s market cap also went up 4.1% to reach $22.63 billion.
Close to 150 million securities worth $6.72 million changed hands at the Base Market to register a 22% and 113% rise in trade volume and value respectively.
Around 55 million securities worth $4.49 million were traded at the First Market. The Secondary Market witnessed the trade of 277 million securities valued at $19.71 million. About 22 million securities worth $42.81 million were traded at the Modern Financial Instruments Market to register a 55% increase in trade volume and 49% decrease in trade value.
IFB witnessed a fresh Initial Public Offering at its Secondary Market for TUKA Refractories Production & Services Company on Monday.
Oil, accounting for 18% of trades, topped other listed sectors in weekly trade volume. Banking and non-metallic mineral products with 13% and 9% stood next respectively.
