Tehran: Markets Flat Amid Volatile Trade
EghtesadOnline: Financial markets in Tehran on Tuesday had an uneventful session after a highly volatile day a session earlier.
Major share indices, forex and gold prices were near the flat-line for the day. Gold and dollar prices, which were pushing with unprecedented force in the past several weeks, came to a halt. The share market has been struggling for weeks to reenter the green zone after deep losses.
The US dollar in Tehran’s open market was traded at 316,000 rials the same as Monday. The euro and pound sterling posted slight decline of 0.6% and 0.4%, respectively.
Selected exchange bureaus, affiliated to the Central Bank of Iran, pushed up forex rates to get closer to open market rates and reduce price differences.
Bank-based moneychangers quoted the dollar at 313,000 rials, up more than 3% or 11,000 rials compared with Monday, the Tehran Gold and Jewelry Union website reported.
Earlier in the week the CBI said it is injecting $50 million in hard currency in the forex market every day to help stabilize rates -- a move that at best has been a stopgap solution as currency prices reach historic levels.
Forex rates dipped temporarily in the early hours of trade on Monday with the dollar declining by 8,000 rials to 306,000 rials. It rally resumed later during the session and advanced to 316,000 rials, closing 1.26% higher.
The central bank says it has increased forex offers at the secondary foreign exchange market, Nima, to improve access to currency for imports. Nima is a trade platform where exporters sell their forex earnings and companies buy for import needs.
As yet another measure to stabilize the currency market, the CBI on Sunday, raised the forex purchasing ceiling for authorized exchange shops and banks to $500,000 a day.
Despite sharp decline in prices of the precious metal in international markets and the lukewarm domestic forex market, the bullion market rose slightly in Tehran on Tuesday.
The Emami gold coin rose 0.6% and was quoted at 163 million rials, up one million rials. Half-Bahar Azadi gold coin was sold for 90 million rials, up 500,000 rials compared with Monday’s session. The 18-karat gold was at the flatline fetching 147.3 million rials per gram, according to eghtesadnews.
In world markets, gold fell 1.9% on Tuesday, hitting below $1,900 an ounce, as the dollar rallied on an impasse over US stimulus and as investors latched onto a slightly less stark economic report from the International Monetary Fund.
Spot gold fell 1.7% at $1,890.01 per ounce by 10:33 a.m. EDT (1433 GMT). US gold futures lost 1.8% to $1,893.70, Reuters reported.
Leaving behind the downturn a session earlier, the main index of Tehran Stock Exchange, TEDPIX, tried but failed to recover Tuesday’s losses.
It barely gained 126 points for the day to close exactly at flat-line (+0.01). The benchmark was at 1,579,632 points. It had lost more than 17,500 points or 1.1% in the earlier session.
About 11.54 billion shares valued at 110.17 trillion rials ($350 million) changed hands at TSE for the day.
Golgohar Mining and Industrial Company contributed the most to the benchmark's fall, followed by Islamic Republic of Iran Shipping Lines Company, Chadormalu Mining and Industrial Company and Mellat Bank.
Esfahan Oil Refining Company gave the biggest boost to the benchmark index, followed by Tamin Petroleum and Petrochemical Investment Company, Telecommunication Company of Iran and Tehran Oil Refining Company.
The main index of Iran Fara Bourse also closed at the flat-line with the IFX losing 5.14 points, or 0.03%, to close Tuesday at 18,273.9.
About 2.32 billion securities valued at 46.99 trillion rials ($149.2 m) were traded at the junior exchange for the day.
Esfahan Steel Company, Gohar Zamin Iron Ore Company, Marun Petrochemical Company and Arfa Iron and Steel Company had the most negative impact on IFX.
Middle East Mines and Mineral Industries Development Holding Company gave the biggest boost to IFX, followed by Day Bank, Damavand Power Generation Company and Iran Fara Bourse.