Tehran Stocks Extend 4-Session Winning Streak

EghtesadOnline: Tehran stocks experienced one of its best days on Sunday climbing more than 4.4% as sentiments were boosted by new government pledges to support the market.

News ID: ۷۵۰۱۸۴

08 June 2020

The benchmark of Tehran Stock Exchange, TEDPIX, gained a record high of 47,342 points and closed the session at 1,116,186 points, further strengthening its foothold above the 1,000,000-points reached in May.

The market has gained more than 14% in four consecutive rallies since last Monday after three weeks of bear market and relatively deep correction in prices.

While the fresh rallies were triggered by a combination of factors, such as attractive share prices after the correction phase and spike in foreign currency rates, the renewed backing for the bourse by senior economic officials fueled Sunday’s rally.

Addressing the parliament on Sunday, two economic officials, Economy Minister Farhad Dejpasand and the SEO of the Securities and Exchange Organization, Hassan Qalibaf-Asl, announced plans to continue to boost the share market.

Briefing MPs about developments in the stock market, Dejpasand recalled the capacity of the market to attract rampant liquidity, warning that pumping liquidity into other markets would create chaos and disruption.

“We are wary of the climate in the capital market and determined to support and expand it,” he was quoted as saying by Boursepress.ir.

Qalibaf-Asl announced plans to expedite the listing of companies in the bourse and ease rules and procedures to enable private companies to be eligible for a bigger share of the debt market.

As with previous sessions, the market cap-weighted TSE’s benchmark was driven largely by the performance of large-cap stocks comprising petrochemical, refining, banks and investment companies.

Shares in many listed companies, including those in the key food and pharma industries, rallied on the back of reports that the government allowed manufacturing companies to increase prices because henceforth they too will have to buy foreign currency at higher rates for their import needs.

The government recently shortened the list of imported goods eligible for subsidized currency (42,000 rails for a USD). Selected food and medicine importers should buy forex from the secondary market, known as Nima, where rates are as high as 155,000 rials to the dollar.

Market Performance

About 7.02 billion shares valued at 89.62 trillion rials ($527.22 million) changed hands at TSE for the day.

Shahrod Sugar Company was the biggest winner as its shares went up 23.63% to 46,003 rials per share.

Pars Animal Food Company incurred the biggest loss among all TSE-listed companies and went down 5% to 108,351 rials per share.

Shahid Ghandi Corporation Complex contributed the most to the benchmark's fall, followed by Pars Electric Manufacturing Company, Pars Animal Food Company and Pars Refractories Company.

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

The Price Index gained 12,567.81 points, or 4.43% to close at 296,310.29.

The First Market Index increased by 36,623.05 points, or 4.64% to post 826,202.29. The Second Market Index went up 87,471.84 points, or 4.11% to reach 2,217,139.59.

The Industry Index was up 41,605.95 points or 4.44% to register 978,002. Free Float Index was up 63,217.13 points to hit 1,489,693.04.

TSE 30 went up 2,349.69 points to settle at 50,865.03 and TSE 50 ended 1,855.43 points higher to finish at 41,938.28.

IFX Up 3.37%

Iran Fara Bourse main index, IFX, gained 406.94 points or 3.37% to close Sunday trade at 12,493.11.

About 2.09 billion securities valued at 39.36 trillion rials ($231.57 million) were traded at the over-the-counter exchange.

Day Bank had the highest number of traded shares and trade value as 139.05 million of its shares worth 2.61 trillion rials ($15.35 million) were traded.

Pegah Tabriz Dairy Company, Mah Taab Kahnouj Power Plant Company, Kharazmi IT Development Company and Pegah Golpayegan Dairy Company had the most negative impact on IFX.

Marun Petrochemical Company gave the biggest boost to IFX, followed by Esfahan Steel Company, Arya Sasol Polymer Company and Saba Tamin Investment Company.