Shares Continue Winning Streak

EghtesadOnline: Tehran Stocks rallied on Monday as the unprecedented surge in currency rates continued to boost investor sentiments over future rise in share prices.

News ID: ۷۵۰۲۹۸

23 June 2020

The benchmark of Tehran Stock Exchange, TEDPIX, gained 40,000 points, climbing 3.12% to extend a winning streak into the sixth day. TEDPIX closed trading session at 1,341,531 points.

As seen in previous sessions, the rally was led by large-cap shares largely in steel, base metal, refinery and mineral companies.

Given that export-oriented companies constitute the majority in the bourse, the market is highly susceptible to volatility in currency rates. Commodity-based companies account for 60% of the TSE market capitalization.

The troubling surge in forex rates has fueled the stock market rally with the rial continuing to lose much of its value against major currencies.

The dollar was traded as high as 198,000 rials on Monday, up 2,000 rials over Sunday’s close. The greenback has gained 10% in one week.

Besides creating inflationary expectations, soaring forex rates help export-oriented companies earn more.

About 9.43 billion shares valued at 124.05 trillion rials ($652.9 million) changed hands at TSE on Monday.

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

IRCA Part Sanat Company was the biggest winner as its shares went up 39.17% to 33,610 rials per share.

Pars Minoo Industrial Company incurred the biggest loss among all TSE-listed companies and went down 6.77% to 12,660 rials per share.

Informatics Services Corporation contributed the most to the benchmark's fall, followed by Behran Oil Company, Pars Minoo Industrial Company and Bahman Group Company.

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

IFX Up 1.74%

Iran Fara Bourse main index, IFX, gained 251.51 points, or 1.74%, to close Monday trade at 14,715.7.

About 2.75 billion securities valued at 55.85 trillion rials ($293.98 million) were traded at the over-the-counter exchange for the day.

Esfahan Steel Company had the highest number of traded shares as 172.66 million shares worth 1.37 trillion rials ($7.25 million) were traded.

Zagros Petrochemical Company, Vitana Corporation and Kowsar Insurance Company had the most negative impact on IFX.

Esfahan Steel Company gave the biggest boost to IFX, followed by Saba Tamin Investment Company, Hormozgan Steel Company and Shahid Tondgooyan Petrochemical Company.