TEDPIX Makes Tepid Gain, IFX Up 2.7% in Weekly Trade

Tehran Stock Exchange’s main index TEDPIX gained 257 points or 0.3% in the past trading week that ended Jan. 10 to close at 97,899.2.

The main index of the smaller over-the-counter exchange Iran Fara Bourse added 21.3 points or 2.7% during the week to stand at 1,076.6

Political risks cast a shadow on last week’s trade, as wary investors held off, limiting trade volume.

US President Donald Trump was expected to decide on Friday on extending waivers on sanctions against Iran, which were required as part of the 2015 nuclear deal, formally known as the Joint Comprehensive Plan of Action.

The White House was yet to release an official statement at the time of this writing, but a top aide told BBC on Friday morning that Trump has decided to extend sanctions relief for another 120 days after a meeting with his national security team.

US Treasury Secretary Steve Mnuchin said he expected the president to impose a separate set of sanctions targeting Iranian firms and individuals.

Over 5.36 billion shares valued at $291 million were traded on TSE last week. The number of traded shares and trade value dropped by 23% and 18% 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 158 points or 0.2% to end at 68,228. The Second Market Index rose by 2,350 points or 1.1% to close at 209,032.6.

And at IFB, with a 30% share of weekly trade, base metal shares were the market leaders, followed by chemicals with 18% and communication equipment manufacture with 6%.

Over 2.03 billion securities valued at $168.7 million were traded at the over-the-counter exchange. The number of traded shares dropped by 11% and trade value grew by 0.3% compared to the previous week.

IFB’s market cap gained $758 million or 2.7% to reach $28.84 billion.

Its First Market witnessed the trading of 155 million securities valued at $5.63 million, indicating a 61% and 57% drop in the number of traded securities and trade value respectively.

About 518 million securities valued at $29.11 million were traded in the Second Market, with the number of traded securities and trade value shrinking by 30% and 17% week-on-week respectively.

Over 4 million debt securities valued at $87.15 million were also traded at IFB, growing 29% and 32% in the number of bonds traded and their value respectively.

Exchange-traded funds, however, dropped 58% and 45% in the number of shares traded and value respectively to reach 38 million worth $13.9 million.

Housing mortgage rights’ trade was on the rise, reaching 400,000 securities worth $5.93 million, up 2% and 3% respectively.

 Forex, Gold Overtake Stocks in ROI

Foreign exchange and gold markets also had a quiet week, save for US dollar fluctuations. The USD beat all other investment options in terms of weekly returns on investment. Euro came first in ROI so far this fiscal year (March 21, 2017-18).

TSE has posted 24.5% in ROI so far this year. It wiped most of its gains in the last three trading weeks over intensifying political risks with liquidity seeping into low-risk markets.

The rial was quoted at 44,150 rials against the greenback by Thursday’s close, to mark a 2.19% growth for the US currency. USD had gained 2.87% the week before last, too, notching new all-time highs as investors turned to safe haven investments.

The USD’s ROI so far this year also reached 17.79%, as it started the year at 37,480 against the rial. That made it the fourth best investment option after euro, stocks and gold.

Euro, on the other hand, dropped 0.33% against the rial this week to settle at 54,250. It had gained significantly during the month’s second trading week, too, registering a whopping 8.31% jump against the rial.

Euro has so far notched a significant 31.93% growth against the rial, having started the year at 41,120.

As for gold, Bahar Azadi gold coin also dropped 0.06% last week to 14.51 million rials. Its total ROI so far this year stood at 23.91%.