Tehran Stock Market Trading Value Reaches $9.6b

EghtesadOnline: From the beginning of current fiscal in March, a total of 358,799 billion shares and right issues worth 1.1 quadrillion rials ($9.6 billion) were traded in 21.23 million deals at the Tehran Stock Exchange.

News ID: ۷۴۶۳۰۲

08 December 2018

The figures show that in 169 trading days 243.9 billion shares worth 633 trillion rials ($5.5 billion) in 11.64 million deals were traded at the First Market and 109.24 billion shares worth 349 trillion rials ($3 billion) in 9.38 million deals changed hands at the Second Market. Also the First Market and Second Market indexes grew by 55,213 points and 123,932 points, respectively, IBENA news website reports.

In addition, 85 million shares worth 84 trillion rials ($736.8 million) in 27,484 deals at the debt market, 1.4 billion shares worth 61 billion rials ($535,000) in 3,181 deals in the derivatives market, and 3.7 billion units worth 3.8 trillion rials from exchange traded funds were traded at the TSE in 173,060 deals.

The news agency said the TSE's main index, TEDPIX, registered 68,124 points increase since the start of the year, reaching 166,860 points by Dec. 5 -- a 73% growth during the period, Financial Tribune reported.

Weekly Trade Up 43%

Trading value at TSE – Iran's first and largest equity market – reached 34.6 trillion rials ($295 million) during the week to December 5, registering an increase of 43% on the previous week.

According to TSE data, 7.83 billion shares and securities in over 596,000 instances were traded showing a 32% increase on a weekly basis, the TSE website reported.

Trading at TSE starts on Saturday and ends Wednesday. The market is closed on Thursday and Friday.

The main index, TEDPIX, grew by 3,088 points during the week to close at 166,860. The First Market Index was up 2,945 points to reach 123,337 and the Second Market Index increased 2,916 points to close at 330,419. Thus, the First Market and Second Market indexes inched up 2% and 3% respectively over the second week of the fall.

Launched in 1967, the TSE initially listed six companies that were later accompanied by other financial instruments such as treasury bonds and state-backed certificates.

As of 2016, TSE had listed more than 318 well-established companies from 41 industries. TSE is based in Tehran and is a founding member of the Federation of Euro-Asian Stock exchanges (FEAS).

Market See-Saw

The last trading week was marked by hope and fear for investors which led to TEDPIX and other indexes swing back and forth at different sessions.

One main news affecting investors which also rocked global markets during the week was the 90-day truce in the trade war between the US and China on the sidelines of the G20 summit in Argentina. The news prompted TEDPIX to gain about 4% on Sunday and Monday.

However, later there was confusion over when the 90-day truce period, during which the United States and China would hold off on imposing more tariffs, would start. Growing doubts of investors depressed the growth prospects for stocks later in the week.

Additionally, US President Donald Trump on Tuesday warned he would revert to tariffs if the two sides could not resolve their differences.

On Thursday and as Iran's markets were closed, stock markets around the world sank as the arrest of a top Chinese technology executive threatened to further strain an already brittle US-China trade relationship and  oil prices fell after OPEC delayed an output decision.

The news is likely to affect Tehran stocks as they reopen on Saturday. But also much depends on the outcome of a meeting of the Organization of Petroleum Exporting Countries (OPEC), where Iran's oil minister, Bijan Namdar Zangeneh, is holding talks with other members.

The meeting of OPEC and its allies in Vienna follows months of dramatic swings in the oil market. In October prices of crude soared to a four-year high, as exports from Iran plunged ahead of American sanctions scheduled for November.

However surging output from America, Saudi Arabia and Russia, combined with the unexpected easing of Iranian sanctions, prompted the oil price to plummet. Zangeneh said before the meeting that Iran will not "cave in" to any demands for cutting its oil output.

One important news during the week was the announcement by Shapour Mohammadi, the head of Security and Exchange Organization – the sole regulatory and supervisory authority of the Iranian capital market – that the SEO has elevated its position from "associate" member to "ordinary" member of International Organization of Securities Commissions.

According to Mohammadi, membership in ordinary category in IOSCO indicates evolution of Iran’s capital market at the global level and in doing so all the existing SEO regulations and standards were matched against IOSCO standards.