Tehran Stocks Rebound After Brief Correction

EghtesadOnline: Tehran stocks rebounded at the end of trading week on Wednesday after two sessions of price corrections sparked by bleak quarterly reports.

News ID: ۷۴۹۵۳۸

25 January 2020

Tehran Stock Exchange eked out a 1.2% gain for the day climbing more than 5,200 points to close trade at 411,211.48, according to Financial Tribune.

While many listed companies posted losses in the financial reports for the third quarter of fiscal year (Sept. 23- Dec. 21), it appears that the role of fresh liquidity far outweighed the gloomy quarterly report to keep the stocks afloat.

The equal-weighted index, which gives the same weight to all stocks irrespective of their market cap, posted 1.8% growth, indicating a comparably better performance of smaller firms listed with the TSE.

Despite a two-day decline in TSE’s main gauge TEDPIX, which is largely influenced by large-cap companies, the equal-weighted index was positive.

The lower TEDPIX is ascribed to the poor performance of large-cap companies, including giant petrochemical and metal firms, in the fall.

TEDPIX had dropped 0.93% on Tuesday while the equal-weighted index took a reverse and climbed more than 1% .

Market analysts also attribute the fresh rallies in part to permits granted to a significant number of listed companies for asset revaluation.

Market Performance

The TSE's main index TEDPIX gained 5,203.47 points, or 1.28%, on Wednesday to end trading at 411,211.5.

About 5.15 billion shares valued at 34.40 trillion rials ($264.66 million) changed hands at TSE for the day.

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

International Construction Development Company was the biggest winner as its shares went up 19.95% to 2,976 rials per share.

Salemin Company (a food producer) incurred the biggest loss among all TSE-listed companies and went down 5% to 66,340 rials per share.

Jam Petrochemical Company contributed the most to the benchmark's fall, followed by Kharg Petrochemical Company, Sepahan Oil Company and Nouri Petrochemical Company.

Iranian Copper Industries Company gave the biggest boost to the benchmark index, followed by MAPNA Group, Telecommunication Company of Iran and Persian Gulf Petrochemical Industries Company.

IFX Up 0.56%

Iran Fara Bourse main index IFX gained 29.33 points, or 0.56%, to close Wednesday trade at 5,287.76.

About 2.04 billion securities valued at 17.73 trillion rials ($136.43 million) were traded at the over-the-counter exchange for the day.

Esfahan Steel Company had the highest number of traded shares as 249.71 million of its shares worth 536.4 billion rials ($4.12 million) were traded.

Goharzamin Iron Ore Company, Marun Petrochemical Company, Shiraz Oil Refining Company and Iranol Oil Company had the most negative impact on IFX.

Tukarail Holding Company gave the biggest boost to IFX, followed by Hormozgan Steel Company, Iran Office Machines Industries Company and Arfa Iron and Steel Company.