Tehran Stocks Extend Gains on Trade Optimism

EghtesadOnline: Tehran stocks closed higher for a second straight session on Monday, supported by expectation of improved global trade atmosphere in the wake of the China-US trade truce and hike in international oil prices.

News ID: ۷۴۶۲۹۵

04 December 2018

The optimism lifted recently-battered major stocks back to the top: export-oriented minerals, metals and refinery stocks which are expected to benefit from the new ambience.

The truce between US and Chinese leaders on trade tariffs also boosted global markets on Monday, fuelling an advance of nearly one percent by world stocks, setting up gains on Wall Street and pushing emerging-market currencies higher against the dollar.

The gains came after China and the United States agreed at the weekend to halt additional tariffs. The deal should keep their trade war from escalating as they try to bridge differences with talks aimed at reaching a deal within 90 days, Financial Tribune reported.

Oil prices jumped by more than 5% on Monday after the US and China ended their trade dispute, and ahead of a meeting this week of the producer club OPEC that is expected to cut supply.

Performance of Indices

Tehran Stock Exchange’s main index TEDPIX gained 3,165.94 points or 1.94% on Monday to end trading at 166,304.4.

About 1.38 billion shares valued at 3.86 trillion rials ($33.30 million) changed hands at TSE for the day.

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

Tamin Petroleum & Petrochemical Investment Co. (TAPPICO)–a company owned by Social Security Investment Company (Shasta) was the biggest winner as its shares went up 5.51% to 2,126 rials per share.

Shasta was established in 1986 for the purpose of investment and benefits from the reserves of Social Security Organization. The holding company is now considered the country's largest after it acquired many firms divested by the government in the past decade.

Leasing Khodro Ghadir Co. (LKG) – a leasing company – incurred the biggest loss among all TSE-listed companies and went down 6.18% to 1,411 rials per share.

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

Jam Petrochemical Company (one of the largest petrochemical producers in the world, according to the company website) contributed the most to the benchmark's fall, followed by Telecommunication Company of Iran(TCI)  and Mobile Telecommunication Company of Iran (MCI) also known under its brand name Hamrah-e-Aval and

The Price Index gained 920.54 points to close at 48,351.8. First Market Index was up 2,716.84 points to post 122,618.8.

The Second Market Index increased by 4,452.82 points to reach 330,804.8 and the Industry Index went up by 2,917.66 points to register 151,232.7. Free Float Index was up 3,910.78 points to hit 178,086.87.

The TSE 30 went up 208.00 points to settle at 8,285.2 and the TSE 50 ended 153.24 points higher to finish at 7,268.1

IFX Up 2.81%

At over-the-counter market, Iran Fara Bourse’s main index IFX gained 49.91 points or 2.81% to close Sunday trade at 1,824.18

About 748 million shares and securities valued at $55.20 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 153.17 million of its shares worth $2.1 million were traded.

Iran Cultural Heritage and Tourism Investment Group (SEMEGA), Kimia Zanjan Gostaran Company ( a producer of lead and zinc concentrate) and Shiraz Oil Refinery Company  registered the highest value increase.

Marjankar Company (a producer of cavity wall bricks), Maskan Alvand Investment Co. and Kowsar Insurance suffered the biggest decline.

Esfahan Steel Company, Middle East Mines & Mineral Industries Development Holding Company and Zagros Petrochemical Company had the most positive impact on IFX.