Small Caps Lift Tehran Shares

EghtesadOnline: Following two consecutive loss sessions, Tehran’s share market saw increase in demand on Tuesday, particularly for small-cap stocks.

News ID: ۷۵۱۲۰۸

07 October 2020

The market-weighted benchmark of Tehran Stock Exchange, TEDPIX, gained 1.65% adding 24,525 points to finish trade at 1,514,699 points.

The upbeat performance of small listed companies pushed up the equal-weighted index by 1.35% for the day. The index gives the same weight to all stocks irrespective of their market cap.

While TEDPIX has experienced a few sessions of bull market in recent weeks of lingering market downturn, thanks to support by institutional traders and market markers, the equal-weighted index was rarely closed in positive territory.

Market observers attribute the rise in demand for penny stocks to retail investors’ return to the market that has gone through sideways since mid-September.

For many investors, share prices in a broad range of listed companies are attractive enough to be worth investing in, thanks to the relentless sell-offs from early August.

A total of 236 ticker symbols at TSE saw price rises, accounting for 69% of the total, according to eghtesadnews.

There also was a capital inflow by retail investors worth 5.4 trillion rials ($19 million), mainly going into bank shares.

Officials at the Securities and Exchange Organization approved measures last month to support the market that has lost more than 30% since early August.

Borrowing from the sovereign wealth fund, allowing banks to invest in shares and assigning market markers to boost liquidity of shares are some efforts to prop up the sagging market.

TSE Trade

About 6.35 billion shares valued at 79.56 trillion rials ($265.21m) changed hands at TSE for the day.

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

Tehran Stock Exchange was the biggest winner as its shares went up 26.75% to 51,510 rials per share.

Niroo Investment Company incurred the biggest loss among all TSE-listed companies and went down 32.32% to 6,010 rials per share.

Niroo Investment Company contributed the most to the benchmark's fall, followed by Iranian Investment Petrochemical Group Company, Pakshoo Industrial Group Company and Shahed Investment Company.

Persian Gulf Petrochemical Industries Company gave the biggest boost to the benchmark index, followed by Mellat Bank, Tehran Stock Exchange and Ghadir Investment Company.

The Industry Index was up 19,123.4 points or 1.45% to register 1,339,800.5. The Free Float Index was up 38,573.59 points to hit 2,028,338.89.

TSE 30 went up 1,285.54 points to settle at 78,167.26 and the TSE 50 ended 987.9 points higher to finish at 60,179.01.

IFX Up 1.35%

Due to disruption in the trade platform of Iran Fara Bourse, the junior equity market, during regular trading hours, trade resumed in the afterhours.

The main index of IFB, IFX, gained 237.76 points or 1.35%, to close at 17,885.23.

About 187.8 million securities valued at 3.51 trillion rials ($11.72m) were traded at junior exchange for the day.

Isfahan Parsian Kowsar Hotel, Peyvand Gostar Pars Energy and Electric Company and Zagros Kowsar Power Generation Company had the most negative impact on IFX.

Esfahan Steel Company gave the biggest boost to IFX, followed by Pasargad Insurance Company, Shahid Tondgooyan Petrochemical Company and Day Bank.