TEDPIX، IFX پایان ماه در اوج هشت هفته ای

Tehran Stock Exchange’s main index TEDPIX gained 1,935 points or 2.5% during the fourth month of the current Iranian year (June 22-July 22) to end at a 55-day high of 80,670.8.

The over-the-counter Iran Fara Bourse’s main index, IFX, reached its 57-day high by scoring 20 points or 2.2%, closing the month at 924.

In this month, both markets successfully regained parts of heavy losses incurred two months ago. TEDPIX and IFX had shed 3% and 2.5% in the previous month respectively.

TEDPIX witnessed its highest growth on the last trading day of the month, July 22, as it jumped 508.30 points. The index had broken past the tenacious 80,000 resistance level just a day before that.

IFX also had its highest rise on June 25 by gathering 10 points in a day.

Over 15.76 billion shares valued at $1.58 billion were traded at TSE over the past month, with the number of traded shares and monthly trade value growing by 18.5% and 7.9% respectively compared to the month before.

TSE’s First Market Index gained 1,869 points or 3.4% during the month to stand at 56,106. The Second Market Index added 1,316 points or 0.7% to reach 178,124.1

At IFB, more than 5.76 billion securities were traded valued at $717.7 million, indicating an 18% downturn in number of shares traded and 13% growth in trade value.

More than 803 million securities worth $40.13 million were traded in IFB’s First Market, registering a 4% and 6% rise in the number of traded shares and trade value respectively. Over 1.97 billion securities changed hands in the Second Market valued at $147.7 million, registering a 3% drop and 21% growth in traded shares and trade value respectively.

> Rising Commodity Prices Prop Up Markets

Metal extraction, base metals and non-metal product industries recorded growths of up to 9% during the month, making them the main drivers of the markets alongside irregular sectors such as sugar, tiles and plastic producers.

Copper had a full-fledged rally during the month, rising from $5,600 in late June to $6,000 on July 21, according to London Metal Exchange. Strikes at copper mines in Indonesia, Chile and Argentina caused a shortage in markets. Coupled with a declining dollar, copper recorded the largest gains among all commodities.

A growing Chinese economy also drove up demand for steel at the world’s largest market for the industrial material. It was followed by a record steel output and usage in the country last month, causing a shortage in supply across the world.

Higher Chinese steel production also caused iron ore and coal inventories to decline, boosting prices along the way.

Foreign quotes for Iranian iron ore in China more than doubled last month. Hematite fines with 55-56% content rose 105% to $25 FOB during June 20-July 20. Declining inventories of 62% Iranian hematite fines and 61% magnetite at China’s Port Tianjin brought prices to $66-68 WMT, according to data by Iranian Mines and Mining Industries Development and Renovation Organization.

Consequently, copper and iron companies such as Shahid Bahonar Copper Company and Golgohar and Chadormlu mining and industrial complexes were among the biggest boosters of TEDPIX on the day of its big jump, July 22.

The shares of Iran’s largest steelmaker, Mobarakeh Steel Company, were up for almost the entire month with a 200-rial rise, reaching 1,600 rials per share.

> The Month of AGMs

Most companies on Iran’s capital market have their fiscal year set on March 21, 2016, which puts the deadline for publishing their balance sheets and holding annual general meetings on July 22.

This flow of new information usually brings about a renewed vigor in the market, as investors simply have more data to base their decisions on and work with.

Although summer started rather slow at Iran’s capital market, experts were forecasting things to pick up as the AGM deadlines reach closer.

However, a peek at the market shows 144 stock symbols are currently frozen on TSE, with the regulators’ notice next to them saying “AGM pending”. Nearly all of these tickers were frozen in the last week of the month.

According to Ali Khosroshahi, Amin Investment Bank’s senior asset management and investment analyst, most of these companies have already held their AGMs, met with their investors and determined their losses and gains.

The only thing keeping their symbols frozen, he added, is their “laziness” to post the new data to www.codal.ir as regulators demand.