Large-Cap Stocks Lead the Tehran Market

EghtesadOnline: Tehran stock market continued its forward march Tuesday as large-cap shares surged. Rising 22,774 points, the market-cap weighted benchmark of Tehran Stock Exchange, TEDPIX, moved up 1.25% to hit 1,844,858.

News ID: ۷۵۰۴۳۷

15 July 2020

However, the TSE equal-weighted index fell 1,504 points with 0.31% drop reaching 480,856. The latter index offers a better picture of the market as it gives the same weight to all shares irrespective of their market cap.

More than 12.55 billion shares were traded on TSE and the junior equity market Iran Fara Bourse on Tuesday. Trading value settled at 220.3 trillion ($960 million) rials, which was down 15.6% compared to the previous day.

Investor sentiment toward some large-cap stocks has been a persistent feature of the share market. Most large-cap companies are among those in which the government has stakes and plans to sell them to the public via exchange traded funds.

Among ticker symbols of companies that had the most positive impact on the TEDPIX were Mobarakeh Steel Company, Tehran Oil Refining Company, National Iranian Copper Industry Company and the two main automakers, Iran Khodro (IKCO) and SAIPA -- all are on the government’s divestment list.

Investors’ interest in large-cap shares has caused the TSE-30 to outpace other market indicators since the beginning of the current fiscal year in mid-March. The index tracks the performance of 30 listed companies with the highest market capitalization.

TSE-30 has grown 326% in the period up to July 11 compared with about 240% growth in TEDPIX, according to data compiled by the Tehran Chamber of Commerce Industries, Mines and Agriculture.

TSE Trade

About 9.98 billion shares valued at 177.84 trillion rials ($773.21 mllion) changed hands at TSE for the day.

Mehr Cam Pars Company was the biggest winner as its shares went up 7.09% to 16,460 rials per share.

Fars Chemical Industries Company incurred the biggest loss among all TSE-listed companies and went down 5.31% to 44,190 rials per share.

Omid Investment Management Group Company contributed the most to the benchmark's fall, followed by Chadormalu Mining and Industrial Company, MAPNA Group and Mobile Telecommunication Company of Iran.

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 0.21%

Iran Fara Bourse main index IFX gained 40.17 points, or 0.21%, to close Tuesday trade at 18,724.47.

Almost 2.73 billion securities valued at 140.89 trillion rials ($612.6 million) were traded at the over-the-counter exchange for the day.

Esfahan Steel Company, Zagros Petrochemical Company, Saba Tamin Investment Company and Damavand Power Generation Company had the most negative impact on IFX.

Marun Petrochemical Company gave the biggest boost to IFX, followed by Shahid Tondgooyan Petrochemical Company, Gohar Zamin Iron Ore Company and Arya Sasol Polymer Company.