Stocks, Housing Make More Money in Tehran Market

EghtesadOnline: Money put into the currency market yielded lower returns during the first nine months (March 20-Jan 20) of the current fiscal year compared to returns on investment in parallel markets.

News ID: ۷۴۹۶۶۶

12 February 2020

According to market data compiled by the Tehran Chamber of Commerce, Industries, Mines and Agriculture, the dollar and euro rates increased 21.8% and 16.9%, respectively, during the period, way lower than profits in stocks and the real estate market, Financial Tribune reported.

The report, published on the TCCIM website, covers data on forex, gold coin and housing market, plus data on consumer price index from Central Bank of Iran figures.

Accordingly, one USD on average was worth 125,600 rials in Tehran's open market during the nine-month period compared to an average 103,100 rials reported during the first nine months of last year.  A euro on average bought 140,900 rials while it was worth 120,500 rials on average last year.

Iran’s currency market has been volatile over the past several weeks, as dealers and speculators try to ride on the negative psychological wave created in the run-up to the meeting of the Financial Action Task Force, the anti-money laundering watch-dog body.

The body will decide on maintaining the suspension of countermeasures against Iran or putting the country on its blacklist during the Feb 16-21 meetings in Paris.

The greenback is currently worth 137,000 rials in the open market, up 3,000 rials from a week ago. A euro is being traded in the region of 152,000 rials. the pound sterling fetches 178, 000 rials.

Likewise, the domestic gold market has been influenced by the relatively lethargic currency market. TCCIM said each Bahar Azadi gold coin was worth 43 million rials ($313.86) on average during the period under review, while it cost 31 million rials ($226.27) during the same period last year.

The value of one Bahar Azadi gold coin rose 38.7% in one year. During the period, each Emami coin cost 44 million rials ($321.16), up 33.3% compared to the same period a year ago.

Stock Market

The TCCIM report shows that the stock market benefited investors more than any other market during the year.

In order to simplify the figures, TCCIM released data based on the base figure of 100 points in fiscal 2016-17.

According to the report, the value of equities traded on the stock market rose from 101.8 points during the corresponding period last year to stand at 245 points in the nine-month period of the current fiscal -- a whopping 140.7% annual growth.

The index for the number of shares traded on the stock market reached 713.3 points in the period, showing 94.1% growth compared to the same period last year when the index was at 367.5 points.

The second profitable sector was the housing market. One square meter of a house in Tehran was sold for 127.8 million rials ($932.84), up 69.5% year on year.

The consumer price index (CPI) in urban areas reached 179.8 points, showing 38.5% growth compared to the same period last year when the CPI stood at 129.8 points.

The CPI for Tehran registered 39.1% growth YOY, reaching  183.6 points during the period. CPI for rural areas was at  187.4 points indicating 42.7% yearly growth.