Trade Prospects Lift Tehran Stocks

EghtesadOnline: Tehran stocks jumped higher Sunday and recouped the previous day's losses as global trade prospects appeared to improve putting most major indexes on track for further gains.

News ID: ۷۴۶۱۳۵

03 December 2018

Stocks have swung back and forth in recent sessions as investors assess the potential impact of the slump global commodity prices have on export-oriented stocks.

Bearish commodity prices and the gains in the value of national currency are perceived as the main reasons for the recent negative trend at the market which led to the TSE shedding 3,918.33 points on Saturday.

Sunday's boost for stocks appeared to come from news that the United States and China have agreed to a trade war ceasefire, Financial Tribune reported.

China and the US agreed to a ceasefire in their bitter trade war on Saturday after high-stakes talks in Argentina between President Donald Trump and Chinese President Xi Jinping, including no escalated tariffs on Jan. 1.

Trump will leave tariffs on $200 billion worth of Chinese imports at 10 % at the beginning of the new year, agreeing to not raise them to 25% “at this time”, the White House said in a statement.

Another positive news came after President Vladimir Putin said Saturday that Russia and OPEC kingpin Saudi Arabia had agreed to renew a pact on oil production cuts, as crude prices slump on global markets.

Following talks at a G20 summit with Saudi crown prince, Mohammed bin Salman, Putin said the world's two biggest exporters of crude "have agreed to extend our agreement."

On the domestic front, Central Bank of Iran data showed that the producer price index had reached 3.5% on November 21 -- a decline of 8.1% compared to the previous month.

The PPI is often seen as advanced indicators of price changes throughout the economy, including changes in the prices of consumer goods and services.

Indexes Performance

Tehran Stock Exchange’s main index TEDPIX gained 3284.76 points or 2.05% on Sunday to end trading at 163,138.6.

About 1.55 billion shares valued at 10.73 trillion rials ($91.75 million) changed hands at TSE for the day.

Trading at TSE and Iran Fara Bourse starts on Saturday and ends Wednesday  and are also closed for public holidays.

Iran Merinos Factories (textile manufacturer), Pars International Industrial Production Co. (consumer goods company) and Doodeh Sanati Pars Company (aka Pars Carbon Black Co. producing carbon) were the biggest winners as its shares went up 4.99% to 9,375 rials, 3,323 rials and 8,541 rials per share.

Lamiran Company (razor blade manufacturer) incurred the biggest loss among all TSE-listed companies and fell 4.99% to 7,939 rials per share.

Mobarakeh Steel Company (the largest steel maker in MENA region) and National Iranian Copper Industries Co. (NICICO) gave the biggest boost to the benchmark index, followed by Golgohar Mineral and Industrial Company.

Fanavaran Petrochemical Company contributed the most to the benchmark's fall, followed by Kermanshah Petrochemical Industries Co. (K.P.I.C) and Mobile Telecommunication Company of Iran (MCI) which is also known under its brand name Hamrah-e-Aval

The Price Index gained 956.59 points to close at 47,509.5. First Market Index was up 2,662.64 points to post 119,902.6

Second Market Index increased by 5,367.98 points to reach 326,353.0. The Industry Index went up by 3,062.44 points to register 148,315.4

The Free Float Index was up 3,931.79 points to hit 174,176.20 TSE 30 went up 218.07 points to settle at 8,077.2 and the TSE 50 ended 161.05 points higher to finish at 7,115.0.

IFX Up 3.28%

At the over-the-counter market, Iran Fara Bourse’s main index IFX gained 56.39 points or 3.28% to close Sunday trade at 1,774.27.

About 1.49 billion securities valued at $50.96 million were traded at the junior exchange for the day.

Esfahan Steel Company (ESCO) had the highest number of traded shares and trade value as 276.89 million of its shares worth $3.73 million were traded.

ESCO, Iran Cultural Heritage and Tourism Investment Group (SEMEGA) and A.S.P.  Construction Company  registered the highest value increase.

Sabzevar Lar Cement Company (PLC), Sina Port& Marine Company and Parsian Railway Transport Development Co. suffered the biggest decline.

Marun Petrochemical Company, Esfahan Steel Company, and Hormozgan Steel Company had the most positive impact on IFX.