Tehran Stocks Show Healthy Growth in Four Months

EghtesadOnline: The main Tehran Stock Exchange index has grown more than 78,000 points since the beginning of the fiscal year (March 21) to August 11.

News ID: ۷۴۸۱۶۰

13 August 2019

According to Tejarat News website, the figure indicates 43% growth in the TSE’s benchmark during the period.

Gaining 569 points during the last trading session on Sunday, the TEDPIX presently stands at 255,876 points.

The index stood at 175,898 points on March 19, marking the penultimate trading session of last fiscal year, Financial Tribune reported.

TSE accomplished this growth mostly during the first quarter of the year. Earlier reports indicate a growth of a little less than 32% by the end of Q1 to June 22.

The stock market has had a lackluster performance in summer, with the main market gauge ending flat in most of the trading sessions.

A market analyst ascribes the declining trend in stock market growth to fluctuations in the currency market.

Timely Intervention

In a talk with IRNA, Alireza Tajbar said this development has particularly impacted export companies listed in the stock market.

Thanks to the Central Bank of Iran’s intervention in the forex market to restructure forex policy and revive the national currency, the market has been mostly bearish since the beginning of the year.

The rial had plummeted more than 50% after US President Donald Trump abandoned the landmark 2015 Iran nuclear accord and imposed tough economic sanctions last year.

According to news outlets, the currency has regained more than 23% of its value over the past months.

Each US dollar fetched 117,000 rials in Tehran at the weekend.

Tajbar said the present market trend would continue until the end of summer as investors wait for the release of half-yearly financial reports of listed companies.

“After the reports are released, the market index will soar again,” he said, confirming earlier forecasts that the stock market main benchmark will surpass 300,000 points by the time the summer is out.

He pointed to present trends in the capital market, saying that investors are showing more interest in small companies.

Due to uncertainties over currency rates that directly affect the price of major stocks, mainly steel and petrochemical companies, investors approach the big stocks with added caution.

Referring to the financial performance of most small companies, he blamed speculative activities for the growth in the prices of small shares, noting that the price hikes cannot be attributed to fundamental factors.