Tehran Stock Exchange: Big Leap Forward

EghtesadOnline: After a one-day hiatus, stocks made a big leap forward on Monday amid signs of positive political developments and monthly financial records of listed companies.

News ID: ۷۴۸۲۷۴

27 August 2019

The main gauge of Tehran Stock Exchange jumped 2.1% for the day, adding more than 5,600 points to TEDPIX, the highest in the past two months.

The trading session marked rising demand for commodity stocks after weeks of lukewarm trade in a market dominated by small and medium sized stocks, Donyaye Bourse reported.

While commodity stocks in major steel and chemical industries witnessed 2% growth, the smaller stocks maintained dominance with their symbol tickers showing 2.5% growth and daily trade value crossing 14 trillion rials, according to Financial Tribune.

Market analysts see positive financial reports of local companies and signs of easing political tensions as the main driving force behind current market trend.

The bull market deepened by monthly reports of listed companies published on Codal website. The reports offer investors a clearer picture of financial performance of the companies.

It appears that markets in Iran responded positively to the news about Foreign Minister Mohammad Javad Zarif’s short visit to France on Sunday to discuss possible ways to salvage the landmark Iran nuclear deal signed in 2015 and abandoned by US President Donald Trump in the summer of last year.

The top diplomat held talks with President Emmanuel Macron on the sidelines of the G7 summit as the main European powers struggle to ease tensions between Tehran and the overtly hostile Trump White House.

Market Performance

The TSE's main index TEDPIX gained 5,646.35 points or 2.10% on Monday to end trading at 274,871.7.

About 4.87 billion shares valued at 15.83 trillion rials ($140.10 million) changed hands at TSE for the day.

Trading at TSE and over-the-counter Iran Fara Bourse starts on Saturday and ends Wednesday.

Persian Gulf Transportation Company was the biggest winner as its shares went up 39.35% to 3,329 rials per share.

Bahman Investment Company incurred the biggest loss among all TSE-listed companies and went down 1.82% to 3,299 rials per share.

Eghtesad Novin Bank contributed the most to the benchmark's fall, followed by Parsian Bank, Hi Web Company, Iran Chemical Industries Investment Company and Bahman Investment Company.

Mobarakeh Steel Company gave the biggest boost to the benchmark index, followed by Parsian Oil & Gas Development Company, MAPNA Group Company and Pars Petrochemical Company.

The Price Index gained 1,517.64 points, or 2.10% to close at 73,877.7. First Market Index increased by 4,607.87 points, or 2.36% to post 199,849.9. The Second Market Index increased by 9,223.01 points, or 1.68% to reach 558,611.0.

The Industry Index increased by 5,130.67 points or 2.13% to register 246,219.7. Free Float Index was up 7,380.43 points to hit 314,182.29.

TSE 30 increased by 255.39 points to settle at 11,789.7 and TSE 50 ended 188.06 points higher to finish at 10,794.1.

IFX up 2.44%

Iran Fara Bourse main index IFX gained 87.06 points or 2.44% to close Monday trade at 3,648.62.

About 1.53 billion securities valued at 9.12 trillion rials ($80.71 million) were traded at the over-the-counter exchange for the day.

Esfahan Steel Company had the highest number of traded shares and trade value as 241.08 million of its shares worth 402.66 billion rials ($3.56 million) were traded.

Kerman Development and Investment Company, Iran Office Machines Industries Company (Maadiran) and Bahman Diesel Company had the most negative impact on IFX.

Gohar Zamin Iron Ore Company gave the biggest boost to IFX, followed by Marun Petrochemical Complex, and Zagros Petrochemical Company.