Tehran Stock Exchange Powers Ahead

EghtesadOnline: Stock market indicators climbed sharply again on Sunday as fresh liquidity fuels the relentless rallies despite serious concerns the market could crash.

News ID: ۷۴۹۹۶۴

04 May 2020

At the close of trading session on Sunday, the main gauge of Tehran Stock Exchange, TEDPIX, was up 4.3%, to break a record set a day earlier by gaining 39,410 points.

Sunday marked another record in the history of Iran’s bourse. Retail investors injected an unprecedented 28 trillion rials ($175 million) in the market, the highest daily inflow registered so far, Bourse Press reported.

The benchmark was boosted largely by metal, bank, refineries and investment companies. Two giant metal holdings, namely Mobarakeh Steel Company and National Iranian Copper Industries Company contributed more than 3,200 points to the TEDPIX alone.

Voicing concern over the increasing investments in the capital market, Amir Hamouni, managing director of Iran Fara Bourse (junior equity market), warned about a lack of financial literacy among novice investors.

“This could well pose a big threat to the market”.

With recession in parallel markets such as real estate, gold, forex and the chaotic auto market, the stock market seems to the very few investment magnet for the people.

Reports say a growing number of people are turning their assets into cash to invest in stocks for higher gains.

“With increasing traction of the bourse, unused capital in forex, gold and auto markets migrated to the stock market” the Persian-language economic newspaper Donyay-e-Eqtesad reported.

It said the trend is in line with government policy to channel liquidity into shares and stocks and prevent price shocks in parallel markets.

The government has stepped up efforts to bolster the bourse by announcing a large-scale divesture plan and reassure investors that it will prop up the market.  The plan involves selling government stakes in selected state-run companies via the stock market.

Market Performance

The TSE's main index TEDPIX gained 39,410.83 points, or 4.3%, on Sunday to end trading at 956,816.56.

About 5.91 billion shares valued at 94.59 trillion rials ($602.49 million) changed hands at TSE for the day.

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

Navard Aluminum Manufacturing Group Company was the biggest winner as its shares went up 59.96% to 30,000 rials per share.

Pars Ceram Company incurred the biggest loss among all TSE-listed companies and went down 0.39% to 156,853 rials per share.

Pare Ceram Company contributed the most to the benchmark's fall.

Mobarakeh Steel Company gave the biggest boost to the benchmark index, followed by Mellat Bank, and National Iranian Copper Industries Company and Social Securities Investment company.

The Price Index gained 12,389.05 points, or 5.08% to close at 256,436.17. The First Market Index increased by 37,531.40 points, or 5.78% to post 687,223.23.

The Second Market Index went up 79,821.99 points, or 4.11% to reach 2,023,902.31.

The Industry Index was up 40,873.57 points or 5.06% to register 848,380.36. The Free Float Index was up 59,336.33 points to hit 1,215,832.19.

TSE 30 went up 2,240.95 points to settle at 39,525.53 and the TSE 50 ended 1,850.48 points higher to close at 35,894.15.

IFX Up 3.57%

Iran Fara Bourse main index IFX gained 381.68 points, or 3.57%, to close Sunday trade at 11,084.65.

About 2.28 billion securities valued at 43.82 trillion rials ($279.16 million) were traded at the over-the-counter exchange for the day.

Shahr Bank had the highest number of traded shares as 233.01 million of its shares worth 970.71 billion rials ($6.18 million) were traded.

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