Investor Optimism Lifts Stock Market

EghtesadOnline: Iran's main stock index rose to its highest level in five months on Monday, led by the material sector, as investor sentiment was lifted by robustness of the global economy and high foreign exchange rates in Iran.

News ID: ۷۴۶۹۶۸

19 March 2019

Monday marked the penultimate trading day of the outgoing year and the rally put Tehran Stock Exchange on a nine-day winning streak. The bull market is astonishing because traditionally stocks are in doldrums in the yearend. But a chain of events created the best month for Iranian stocks on record.

The USD exchange rate in Tehran was still above the support level of 130,000 rials on Monday.

TEDPIX, the main gauge on TSE, gained 3,376.20 points or 1.96% to close the session at 175,898.7. Monday's rally comes after the benchmark index closed above the resistance level of 170,000 earlier this week for the first time in four months, according to Financial Tribune.

As befitting the recent rally, Persian Gulf Petrochemical Industries Company, National Iranian Copper Industries Company, Chadormalou Industrial and Mining Company and Golgolhar Industrial and Mining Company had the biggest positive impact.

Oil edged higher on Monday, supported by the prospect of prolonged OPEC-led oil supply curbs though concern that an economic downturn may dent fuel consumption curbed gains.

OPEC and non-OPEC ministers who met in Azerbaijan in the past week to monitor oil supply-cut accord have said they plan to exceed their commitments. Saudi Arabia signaled OPEC may need to extend the curbs until the end of the year.

As for metals, London copper prices rose for a second day Monday, as concerns over supply tightness outweighed weak US manufacturing data and a jump in London Metal Exchange inventories.

On the junior exchange Iran Fara Bourse, the main index IFX rose 49.65 points or 2.3% on Monday to end at 2,206.48. Similar to the previous days, Marun Petrochemical Company, Zagros Petrochemical Company and Gohar Zamin Iron Ore Company had the biggest positive impact on IFX.

Shoga Glass Company had the biggest gains on TSE as its share price soared 154.63% and was traded for 2,334 rials. On IFB, Minoo Group (a major food producer) made the biggest gain as its share increased 12.4% to be traded at 4,441 rials.