TSE, IFB Benchmarks End Month Lower

Tehran Stock Exchange’s main index TEDPIX shed 741 points or 0.9% in the Iranian month of Dey (December 21-January 19) to end at 79,382. The over-the-counter Iran Fara Bourse’s main index, IFX, lost 23 points or 3% to finish at 845.

Over 20.1 billion shares valued at $1.01 billion were traded at TSE over the past month, registering a 30% rise in the number of traded shares and a 0.2% drop in trade value.

The First Market Index lost 383 points or 0.7% to stand at 56,587 and the Second Market Index gave up 2,381 points or 1.4% to reach 167,584.

At IFB, more than 5.3 billion securities valued at $813.8 million were traded, indicating a 4% and 5% decline in the number of traded shares and trade value respectively. 

IFB’s market cap lost $764.2 million or 3.1% to stand at $24.2 billion.

On average, 269 million securities worth $40.7 million were traded at IFB on a daily basis during the month.

More than 674 million securities worth $31.5 million were traded in IFB’s First Market, registering a 31% growth in the number of traded shares and a 26% plunge in trade value. 

The Second Market registered a 48% and 41% decline in traded shares and trade value compared to last month, as it traded 1.56 billion securities worth $123.9 million. 

The ‘base metals’ group of IFB-listed industries had the highest monthly rise in share value (20%), followed by ‘chemical products’ (13%) and ‘industrial contracting’ (8%).

January 16, 2016, marked the day sanctions against Iran’s economy over its nuclear program started to roll back as part of the landmark deal the country signed with world powers in 2015. The breakthrough has contributed to a surge of foreign investment in Iran’s capital market.

According to the chief executive of Central Securities Depository of Iran, Mohammad Reza Mohseni, the number of foreign entities investing in Iran’s capital market has increased 42% post sanctions.

“Latest statistics show 264 foreign investors have received trading codes over the past year, which shows a 42% rise compared with the corresponding period of a year before,” he said.

According to Saeed Fallahpour, Securities and Exchange Organization’s board member, foreign investment in Iran’s capital market stood at 1,397 billion rials (about $35.7 million at market exchange rate) at the beginning of the Iranian fiscal year 1392 (March 2013-14). 

The figure grew 782% to stand at 12,321 billion rials (about $314.8 million) by the end of the Iranian month of Azar this year (December 20, 2016).

IFB’s chief executive, Amir Hamouni, said the over-the-counter exchange has attracted 5 trillion rials (about $125 million) in foreign investment since Implementation Day–the day sanctions began to roll back.

Hamouni said half of the figure pertains to the exchange’s debt market and the remaining half has gone to its stock market.

“Most of the investors have come from Germany, Persian Gulf littoral states and those in East Asia,” he said.