Tehran Stocks Close at Record Highs

EghtesadOnline: Tehran stocks climbed 2.5% on Monday to stage one of its biggest rallies. The main gauge of Tehran Stock Exchange gained more than 10,600 points and hit the historic level of 438,881 points.

News ID: ۷۴۹۶۱۹

04 February 2020

Equal-weighted index raised in the same proportion to TEDPIX, by 2.6%, indicating that both small and large-cap equities gained for the day. Equal-weighted index gives the same weight to all stocks irrespective of the companies’ market cap, Financial Tribune reported.

Inflow of fresh liquidity, increase in new investors and news about asset revaluation of several large-cap companies were said to be the main driving force behind the bull market.

Value of equities in retail trade hovered around 40 trillion rials ($307 million) on Monday, highlighting active participation of retail investors, according to Donyaye Bourse website.

Retail investors have channeled liquidity into stocks over the past months due to the sluggish parallel markets.

Saeed Eslami, head of the Iranian Institutional Investors Association, said Monday 15 trillion rials ($115 million) in fresh liquidity is injected into stock market every day.

After two lethargic sessions, Tehran stocks apparently tracked trends in world markets on Monday as most markets in Europe and the US opened the week on the positive front.

European shares inched up on Monday, recovering from their worst week in nearly seven months as jitters remained over the economic fallout from a virus outbreak in China, according to Reuters.

China’s markets plunged at the open in their first session after an extended Lunar New Year break that began on Jan. 23. Jittery investors erased almost $400 billion from Chinese stocks, with the Shanghai Composite index down almost 8%, its worst daily drop in four years.

TSE’s benchmark was boosted mainly by rising demand for stocks of large-cap companies, especially in metal companies. Two giant metal companies had the most positive impact on TSE’s benchmark.

Market Performance

The TSE's main index TEDPIX gained 10,664.51 points, or 2.49%, on Monday to end trading at 438,881.5.

About 7.30 billion shares valued at 42.6 trillion rials ($317.9 million) changed hands at TSE for the day.

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

Ilam Cement Company was the biggest winner as its shares went up 36.04% to 7,501 rials per share.

Saipa Glass Company incurred the biggest loss among all TSE-listed companies and went down 3.66% to 13,092 rials per share.

Dr. Abidi Pharmaceutical Company contributed the most to the benchmark's fall, followed by Seamorgh Company (active in poultry industry), Offset Press Incorporation and Jaber Ebne Hayyan Pharmaceutical Company.

Mobarakeh Steel Company gave the biggest boost to the benchmark index, followed by National Iranian Copper Industries Company, Telecommunication Company of Iran and MAPNA Group.

IFX Up 2.24%

Iran Fara Bourse main index IFX gained 121.2 points, or 2.24%, to close Monday trade at 5,537.03.

About 2.07 billion securities valued at 18.71 trillion rials ($139.63 million) were traded at the over-the-counter exchange for the day.

Jahrom Power Plant Development Company had the highest number of traded shares and trade value as 190.19 million of its shares worth 601.94 billion rials ($4.49 million) were traded.

Marun Petrochemical Company, Ava Novin Investment Company, Pars Paper Industrial Group Company and Ghasem Iran Company (distributor) had the most negative impact on IFX.

Middle East Mines and Mineral Industries Development Holding Company gave the biggest boost to IFX, followed by Esfahan Steel Company, Iran Office Machines Industries Company and Sarcheshmeh Copper Investment Company.