Tehran Stocks Climb Higher

EghtesadOnline: Tehran stocks extended weeks of consecutive rallies on Tuesday as demand remained high for shares of big listed companies.

News ID: ۷۴۹۹۲۹

29 April 2020

According to financial tribune,

The main gauge of Tehran Stock Exchange, TEDPIX, gained 25,447 points to climb 3.1% and close session at 845.952 points to put TSE’s growth at 22.5% during seven trading days since the beginning of current calendar month (April 20).

Investors’ keen interest in large-cap stocks pushed up TSE 30 index, which tracks the 30 largest publicly traded companies, to 4.1%.

This is while sell-off and price correction in many small shares caused the equal-weighted index to close lower at 1.7%.

According to Donyaye Bourse website, investors largely tend to sell small-cap stocks to take a better buy position for bigger shares.

Market analysts ascribe the rare trend to government efforts to raise funds from the fast-pacing market to provide for its budgetary needs.

This should help the government to partly, and maybe in the short-term, curb inflation in prices by directing liquidity into the share market and avoid its move into parallel markets.

According to Mohammadreza Poorebrahimi, a lawmaker, about 12 trillion rials ($75 million) is added to the money supply in Iran on daily basis.

“If this volume of liquidity is not absorbed in some [productive] way, it can challenge our parallel markets,” IRNA quoted him as saying Tuesday.

Market Performance

About 6.76 billion shares valued at 90.84 trillion rials ($582.3 million) changed hands at TSE for the day.

Ghadir Investment Company was the biggest winner as its shares went up 18.85% to 9,060 rials per share.

Mazandaran Cement Company incurred the biggest loss among all TSE-listed companies and went down 5% to 13,359 rials per share.

Tamin Pharmaceutical Investment Company contributed the most to the benchmark's fall, followed by Ofogh Koorosh Chain Stores Company, Iran Transfo Company and Pakshoo Industrial Group Company.

Persian Gulf Petrochemical Industries Company gave the biggest boost to the benchmark index, followed by Ghadir Investment Company, Mobarakeh Steel Company and Social Security Investment Company.

IFX Up 1.7%

Iran Fara Bourse main index, IFX, gained 166.47 points, or 1.7%, to close Tuesday trade at 9,940.97.

About 2.99 billion securities valued at 55.39 trillion rials ($355 million) were traded at the over-the-counter exchange for the day.

Shahid Tondgooyan Petrochemical Company had the highest number of traded shares as 313.61 million of its shares worth 3.85 trillion rials ($24.7 million) were traded.

Shahid Tondgooyan company, Kowsar Insurance Company, Omid Taban Hour Energy Management Company and Sarcheshmeh Copper Investment Company had the most negative impact on IFX.

Middle East Mines and Mineral Industries Development Holding Company gave the biggest boost to IFX, followed by Saba Tamin Investment Company, Esfahan Steel Company and Zagros Petrochemical Company.