FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT JUNE 2013
IRAN FAFA BOURSE
CAPITAL MARKET DEVELOPMENT
AND ECONIMIC OUTLOOK
IFX (Iran Fara Bourse Index) increased from 449
on April 2013 to 865 on December 2013 with a
growth of 93%. One of main factor of record-
breaking IFX in this period is political stability
and positive perspective about future political
and economic status of Iran.
Parallel markets include currency market, gold
market and housing market have faced to
recession and price decrease in the second
half of the year 2013; as a result, a portion of
invested funds in those markets have moved
to capital market which has had a significant
impact on IFX. Therefore, before any changes
in banking policy base on increasing bank
interest rates or Mosharekat interest rate, these
invested funds will be remained in the capital
market and will be a barrier to dramatic fall
of IFX. However, it shouldn’t be ignored that
inflation rate is increasing; according to the
report of Central Bank of Iran (CBI), the liquidity
growth during the years 2012-2013 grew around
24%. Therefore, this trend could lead to rise
of different expenses and energies in present
industries in the capital market and as a result
could be effective on their profitability and share
price.
Total return was 104% from April to December
2013, while total return in currency market was
about 50% which will lead to absorb of funds
from competitor markets to capital market
and consequently will lead to growth of capital
market indices.
Furthermore, the latest talks between Iran and
the group 5+1 have brought a hopeful outlook
for our economy.
IFB performance in 2012
The market capitalization of IFB has increased
from US$ 13 billion on March 2012 compare to
US$ 20 billion on March 2013, with a percentage
change of 47%. Market capitalization of all
market segments (First Market, Second Market,
Base Market, New Financial Instrument Market
and Third Market) of IFB at the end of December
2013 was US$ 40 billion.
The traded value increased by 69% to US$
5.934 billion in 2012 comparison to US$ 3.480
billion in 2011. The traded value from April 2013
up to the end of December 2013 increased
by 140% to US$ 8.975 billion compare to US$
3.732 billion in the same period of last year
The trading volume increased by 73% to 33
billion in 2012 comparison to 19 billion in 2011.
The trade volume from April 2013 up to the
end of December 2013 increased by 36% to 30
900
800
700
600
500
400
300
200
100
0
Nov.10
The number of listed companies in 2012 was
201 compared to 109 in 2011. During 2012, one
of listed companies moved from IFB to Tehran
Stock Exchange and 8 of listed companies were
delisted from IFB.
(1 US$= IRR 24,774, December 2013-http://
cbi.ir)
Economic performance
According to the Central Bank report on March
19, 2013, Exports (FOB) has been USD 98
billion in 2011 comparison to USD 145 billion in
2011, with a percentage change of -32%.
Imports (FOB) has been USD 67 billion in 2012
comparison to USD 78 billion in 2011, with a
percentage change of -14%.
Liquidity growth rate has been 29% in 2012
comparison to 19.4% in the same period of last
year, with a percentage change of 49%.
Based on CPI, the average inflation rate of 2012
compared with the average inflation rate of 2011
is 30.5% while Unemployment rate remained
approximately unaltered at 12.2% in 2012.
General Economic Indicators
IFB Index (IFX) 2009-2013
Nov.09
billion compare to 22 billion in the same period
of last year
Nov.11
Nov.12
Nov.13
Real GDP Growth (Annual change ;%)
Consumer Price Inflation
(Year average; %)
Oil GDP (Annual Percent Change)
Non-Oil GDP (Annual Percent Change)
General Government Fiscal Balance,
Including Grants (% of GDP)
Total Government Gross Debt
(% of GDP)
General Government Total Revenue,
Excluding Grants (% of GDP)
Non-Oil Revenue (% of Non-Oil GDP)
Current Account Balance
(Billions of U.S Dollars)
Current Account Balance (% of GDP)
Broad Money Growth
2006- 2011 2012 2013 2014
2010
4.6
3.0
-1.9
-1.5
1.3
15.8 21.5 30.5 42.3 29.0
0.5
5.1
2.8 0.7
3.3
4.1 -11.9
-0.9
-2.5 -4.6
-1.2
-2.5 -2.0
1.5
-4.4
8.7 9.8 8.2 6.0 8.8
25.9 25.8 16.5 14.7 12.7
11.7
22.6 13.0
59.4 9.8
27.2 8.6
11.9 8.2
1.0
7.0
26.6 12.0
19.4 5.0
21.6 3.1
46.2 0.3
25.6
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