TEDPIX Closes 3.5% Higher

EghtesadOnline: Tehran stocks gained some more lost ground as angst-ridden investors started leaving the sell side, and finding share prices attractive, rushed to buy.

News ID: ۷۵۱۰۰۷

16 September 2020

The benchmark of Tehran Stock Exchange, TEDPIX, surged 3.5% on Tuesday, gaining 56,972 points to end trading session at 1,664,559 points.

The rally swept through all small and large cap stocks with large-caps dominant as shown in the 4.2% growth in the TSE-30 index, which tracks the performance of 30 largest companies listed with the TSE in terms of market capitalization.

Tuesday also showed renewed investor interest in small companies with 1.23% growth in the equal-weighted index.

Stocks rally was driven by a combination of factors, namely measures adopted by the regulator to boost demand and spillover effect from parallel markets, namely currency and gold.

During the market downturn, which wiped off 30% of the TSE value, foreign exchange rates soared to historic highs well over two months, absorbing a portion of the capital flight from the share market.

Rise in forex rates gave further rise to inflation expectation and obviously boosted profit margins for giant listed companies involved in the export business.

On Tuesday, about 9.43 billion shares valued at 110.16 trillion rials ($408.03 million) changed hands at TSE.

Shahed Investment Company contributed the most to the benchmark's fall, followed by Omid Investment Bank, Iran Khodro Company and Melli Industrial Group Company.

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

Iran Fara Bourse main index, IFX, gained 437.13 points, or 2.57%, to close Tuesday trade at 17,450.66.

About 2.39 billion securities valued at 77.8 trillion rials ($288.13 m) were traded at the junior exchange for the day.

Kerman Development Investment Company, MAPNA Asaluyeh Power Generation Company, Tabarok Industrial Group Company and Saman Insurance Company had the most negative impact on IFX.

Marun Petrochemical Company gave the biggest boost to IFX, followed by Arya Sasol Polymer Company, Middle East Mines and Mineral Industries Development Holding Company and Gohar Zamin Iron Ore Company.