Tehran Stocks Regain Composure on Big Firms Earnings

EghtesadOnmline: After losing more than 6,000 points in the past two days, Tehran Stock Exchange's main gauge, TEDPIX closed up around 5,775 points higher on Monday to return to the resistance level of 180,601.4 points. Putting behind the panic and speculation of the past two weeks, the underlying mood remains cautious as investors continue to question whether the rally in stocks is supported by long-term economic and political indicators.

News ID: ۷۴۶۱۰۹

16 October 2018

The new era of rationality was evident in soaring demand for big export companies' shares, whose prospects were buoyed by their half-yearly earnings reports. On the other hand, stocks of small firms continue to suffer as investors become increasingly picky in building their portfolio. The stocks for some construction and materials firms and food companies experienced the biggest selloff. According to Donyaye Bourse, a stocks analysis website, for some stocks to recoup their recent losses, share prices need to jump as much as 40%.

Monday's rebound was mostly owed to the rise in share prices of steelmakers, metal and mineral firms, as well as the collective ascent of refinery and petrochemical giants, which lifted the market as much as 3%, according to Financial Tribune.

This is while analysis of data from Tehran Stocks Exchange shows banks and credit institutions had the lion’s share in the volume of stock trade, making up 27.4% of the total during the trade week ending October 3, IBENA reported.

Figures also show oil products, coke, and nuclear fuels grabbed the highest trade value at 18.9% during the week.

In addition, metals stood on top of the list of listed industries in terms of return on investment with 54%, while wood products witnessed the highest decline at 17.5% during the 30 days to October 10.

During the trade week ending October 10, TSE's main index reached 181,016 which was down by 4,544 points compared with the week before. During the five working days, 24.99 million shares worth 81.37 billion rials ($581,221) were traded, registering 1% and 2% decreases in volume and value respectively compared with the week before.

On the other hand, 6.9 quadrillion rials ($49.32 billion) worth of securities were traded, indicating 2.4% decline compare to the week before.

The stability was also ongoing in the currency and gold markets with the US dollar being traded for 138,500 at Tehran exchange bureaux, almost unchanged from the previous day and the benchmark Bahar Azadi gold coin hovering around 43 million rials ($310).

>Monday’s Performance

Tehran Stock Exchange’s main index gained 5,774.95 points or 3.30% on Monday to end trading at 180,601.4.

About 2.88 billion shares valued at $67.77 million changed hands at TSE for the day.

Trading at TSE and Iran Fara Bourse starts on Saturday and ends on Wednesday.

Pakshoo Industrial Group was the biggest winner as its shares went up 12.47% to 18,480 rials per share.

Barez Industrial Group incurred the biggest loss among all TSE-listed companies and went down 14.3% to 3,517 rials per share.

Mobarakeh Steel Co. gave the biggest boost to the benchmark index, followed by Persian Gulf Petrochemical Industries Company, and Iran National Copper Industry Company.

Barez Industrial Group contributed the most to the benchmark's fall, followed by Bank Parsian, and Iran Alloy Steel Company.

The Price Index gained 1,687.82 points to close at 52,782.6.

The First Market Index was up 4,612.84 points to post 136,353.8.

The Second Market Index increased by 9,781.47 points to reach 343,819.5.

The Industry Index went up by 5,474.39 points to register 164,683.4.

The Free Float Index was up 6,074.64 points to hit 193,090.16.

The TSE 30 went up 343.02 point to settle at 9,081.1 and the TSE 50 ended 291.12 points higher to finish at 7,921.4.

> IFX Up 3.51

Iran Fara Bourse’s main index IFX gained 67.73 points or 3.51% to close Monday trade at 1,995.53.

About 1.23 billion securities valued at $66.4 million were traded at the over-the-counter exchange for the day.

Esfahan Steel Company had the highest number of traded shares and trade value as 185.56 million of its shares worth $3.8 million changed hands.

Rishmac Production and Exports Company, Iran Cultural Heritage and Tourism Investment Group Company, and Tadbirgaran-e Fars and Khuzestan registered the highest value increase.

Tuka Refractories, Asia Seir Aras Company, and Alvand Housing Investment Co. suffered the biggest decline.

Zagros Petrochemical Company, Marun Petrochemical Company, and Middle East Mines Industries Development Holding Company had the most positive impact on IFX.