Tehran Stocks Buoyed by Domestically-Oriented Shares

EghtesadOnline: Unlike the shaky global markets, Tehran stocks opened trading week in positive territory as investors sold metal and commodity equities to buy shares of less export-oriented firms, perturbed by widespread price fall in global metal markets.

News ID: ۷۴۹۵۲۵

26 January 2020

The main gauge of Tehran Stock Exchange rose 1.4% on Saturday adding 5,790 points to TEDPIX to close trading session at 417,001, Financial Tribune reported.

Saturday’s session marked a price fall in most metal stocks triggered by a selloff in global industrial metals, and rising demand for shares of less export oriented industries, including cement, food, ceramic, pharmaceuticals and transportation, according to Donyaye bourse website.

The outbreak of coronavirus in China has put pressure on oil and industrial metal prices. Copper prices fell to their lowest in more than six weeks on Thursday as the rising coronavirus death toll heightened fears over its potential impact on the Chinese economy.

Benchmark copper on the London Metal Exchange (LME) ended down 2% at $5,987 a toe, taking this week’s losses to about 4.5%, according to Reuters.

Selloff in a number of commodity and metal stocks and inflow of liquidity to the small-cap companies, including most of the domestic-oriented industries, pushed up the equal-weighted index by 2.8%.

Equal-weighted index gives the same weight to all equities irrespective of their market cap.

Out of 322 active symbol tickers on Saturday, 279 ended in green and stocks of 181 companies changed hands at the highest maximum daily prices.

About 5.99 billion shares valued at 41.15 trillion rials ($308.29 million) changed hands at TSE for the day.

HiWeb Company (internet service provider) was the biggest winner as its shares went up 5.81% to 10,882 rials per share.

Salemin Company (food producer) incurred the biggest loss among all TSE-listed companies and went down 4.63% to 63,269 rials per share.

National Iranian Copper Industries Company contributed the most to the benchmark's fall, followed by Bank Mellat, Golgohar Mining and Industrial Company and Nouri Petrochemical Company.

The Telecommunication Company of Iran gave the biggest boost to the benchmark index, followed by MAPNA Group, Omid Investment Management Group Company and Islamic Republic of Iran Shipping Lines Company.

IFX Up 1.2%

Iran Fara Bourse main index IFX gained 63.32 points, or 1.2%, to close Saturday trade at 5,351.08.

Marun Petrochemical Company, Pasargad Oil Company, Kerman Development and Investment Company and Golestan Pegah Dairy Company had the most negative impact on IFX.

Hormozgan Steel Company gave the biggest boost to IFX, followed by Jahrom Power Plant Development Company, Arfa Iron and Steel Company and Goharzamin Iron Ore Company.