Tehran Stocks Snap 3-Day Losing Streak

EghtesadOnline: S tocks rebounded Tuesday, clawing back some of the week's steep losses, but the turbulent trading of the last few days has made it almost certain that the boom markets seen in summer and early autumn is a thing of the past.

News ID: ۷۴۶۵۹۷

30 January 2019

Equity indices extended declines for the third session on Monday, tracking weakness in commodity stocks and uncertainty regarding the future of export-based companies. Tehran Stock Exchange main index shed 1,600 points on Sunday.

According to the website Donya-e- Bourse, the market gained more equilibrium on Tuesday as investors showed renewed interest in commodity stocks.

It seems commodity stocks are on the way to dethroning bank and auto stocks that preoccupied investors in the past weeks, Financial Tribune reported.

Tehran Stock Exchange main index TEDPIX gained 334.82 points or 0.21% on Tuesday to end trading at 160,153.0.

More than 1.5 billion shares valued at 4.66 trillion rials ($38.85 million) changed hands at TSE for the day.

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

Gharb Cement Company was the biggest winner as their shares went up 14.13 % to 3, 3885 per share.

Neyriz White Cement Factory incurred the biggest loss among all TSE-listed companies and fell 4.99% to 14,671 rials per share.

According to Shahin Cheraghi, a market analyst, sanctions and the oil price fall has affected the stock market negatively in the past days.

Another reason for the market volatility, he said, is the volume of liquidity which has almost doubled since the time of the previous round of sanctions.

The increased volume of liquidity, he said, is what encourages people to be drawn to parallel markets such as gold and currency. While in the past, the fall in the national currency meant increased capital for export companies and thus a boom for the stock market, the nagging pessimism about the future of companies in light of sanctions is hindering that.