Iran's Capital Market Outperforms Other Sectors

EghtesadOnline: A report by Tehran Chamber of Commerce, Industries, Mines and Agriculture says the value of equities traded in the capital market during first ten months of the current Iranian fiscal to January 20 grew 181%.

News ID: ۷۸۴۵۵۲

09 March 2019

The report presented data based on the base figure of 100 points in the year 2016-17 (2016-17=100). Accordingly, the value of traded equities dropped to 91.4 in the first ten months of the previous fiscal (2017-18) and jumped to 256.8 during the same period in the current fiscal.

During the period under review the index for number of shares also rose to 200.2 (based on 2016-17=100) in the current fiscal to register 132.3% annual growth.

In a note to the TCCIMA website, Abbas Argon, a member of the TCCIMA board of representatives, delved into the root causes of sharp rises in the capital market indexes. He ascribed the dramatic growth mainly to forex market volatility precipitated by the US withdrawal from the Iran nuclear deal and the new sanctions, Financial Tribune reported.

Corroborating the above statistics, Argon says the capital market grew 70% since the beginning of the current fiscal to March 5. The stock market’s main index, TEDPIX, started the current fiscal at 96,000 points and after going through a period of drastic changes in summer reached its peak of 195,000 points in the first month of autumn (Sep.23-Oct.22).

The market again fell in autumn, after the rial pared some of its worst losses to stand at 160,000 points on March 5, he said.

Other Markets

The TCCIMA report showed that the USD on average was traded at 103,880 rials in Tehran’s open market during the first ten months of current fiscal – up 160% compared to the same period a year before. In the first ten months of the previous fiscal one green back hardly fetched 39,280 rials.

A euro was traded for 121,390 rials on average during the 10-month period in the current year, registering 163.2% hike year-on-year.

During the ten months, the benchmark Bahar Azadi gold coin on average was sold for 31.9 million rials ($246) while it cost 12.5 million rials during the same period a year before.

The figures reveal 155.2% hike year-on-year.  Likewise, each Emami gold coin was traded for 33.8 million rials during the period, up 160% compared to the same period one year ago.

Homes in Tehran on average cost 77.6 million rials ($597) per square meter during the period under review, up 66.88% compared to the first ten months of the previous fiscal when a square meter was worth 46.5 million rials on average.

Consumer Price Index in urban areas, based on 100 points in fiscal 2016-17, stood at 110.9 during the ten-month period in the previous fiscal and jumped to 154.7 during the same period in the current fiscal, indicating 123.3% growth YOY.

The CPI for Tehran was a bit higher at 157.4 during the period to register 41.1% annual growth.

Likewise, the Production Price Index rose to 150.5 by the end of the tenth Iranian month, registering 38.4% rise compared to 108.8 points in the previous fiscal.