Tehran Stocks Gain After Buoyant Data

EghtesadOnline: The selloff which brought down stocks on the Tehran Stock Exchange on Monday gave way to a buying spree on Tuesday.

News ID: ۷۴۷۳۹۶

22 May 2019

The main TSE gauge climbed 1.5% amid positive news about the monthly performance data of listed companies and falling foreign exchange rates.

According to the Donyaye Bourse website, the sharp declines in forex rates in the past few days sent a positive signal to groups of investors who have been disappointed by the negative psychological climate created by political tensions.

Reports about efforts to ease tense climate and the intervention of the Central Bank of Iran in the currency market brought down currency rates again on Tuesday, according to Financial Tribune.

Although forex declines normally impact the stock market negatively, the analytical website says this conveyed a signal of easing tensions to jittery investors.

Among the positive political developments perceived to boost stocks and signify some stability was the news of the unexpected arrival of Oman’s Foreign Minister Yusuf bin Alawi to Tehran on Monday.

The Sultanate of Oman has had cordial relations with Iran both before and after the revolution in 1979. Omani leaders have often helped mediate conflicts between Tehran and Washington.

Trump’s America and Iran are currently embroiled in a bitter dispute triggered by the growing animosity of Donald Trump after the president withdrew from the 2015 Iran nuclear accord last year and reimposed tough economic sanctions.

According to Reuters, world stocks gained on Tuesday, with chipmakers and companies exposed to Asia among the best performers, after Washington temporarily eased trade restrictions imposed last week on China’s Huawei.

In Europe, the broader Euro STOXX 600 climbed 0.6%, extending gains earlier in the trading session, with Germany’s DAX rising 1.1%, while France’s CAC 40 added 0.6%.

China’s Shanghai Composite index was up 1.23%, while the blue-chip CSI300 index ended 1.35% higher.

Trump’s government added Huawei to a trade blacklist last week, escalating trade tensions between the world’s two biggest economies.

Market Performance

The TSE’s main index TEDPIX gained 3,220.05 points or 1.52% on Tuesday to end trading at 215,091.8.

More than 3.5 billion shares valued at 12.13 trillion rials ($86.66 million) changed hands for the day.

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

Pegah Urmia, a major dairy product company in Iran, was the biggest winner as its shares went up 6.07% to 3,687 rials per share.

Iran Mercantile Exchange incurred the biggest loss among all TSE-listed companies and went down 5% to 16,324 rials per share.

Mobarakeh Steel Company gave the biggest boost to the benchmark index, followed by Bank Mellat, Pars Petrochemical Company, and Golgohar Mining and Industrial Complex.

Behran Oil Company contributed the most benchmark's fall followed by Iran Mobile Telecommunication Company of Iran and Mines and Metals Development Investment Company.

Iran Fara Bourse’s main index IFX rose 0.82% to close Tuesday trade at 2,544.44 points.

Over 1.01 billion securities valued at 6.80 trillion rials ($48.61 million) were traded at the junior exchange for the day.