Tehran Stocks Rebound From Earlier Plunge

EghtesadOnline: Tehran stocks rebounded from a short-lived correction and pared previous session’s losses at the close of trading week on Wednesday.

News ID: ۷۸۵۳۸۸

16 February 2020

Standing at the all-time of high of 459,565 points, the main gauge of Tehran Stock Exchange, TEDPIX, gained close to 12,000 points for the day to post a daily hike of more than 2.6%, according to Financial Tribune.

Stocks took a drubbing Monday as investors rushed to sell shares to save gains from weeks of non-stop rallies. TSE’s benchmark had lost 7,466.66 points, or 1.64%, the biggest loss in the past month.

Equal-weighted index, which gives the same weight to all stock irrespective of their market cap, kept pace with TEDPIX but closed lower at 2.48%.

Markets in Tehran were closed Tuesday for a national holiday marking the 41st anniversary of the Islamic Revolution.

Out of a total of 319 active symbol tickers on Wednesday, 132 closed at the maximum daily prices, representing 40% of all stocks.

Stocks in mineral, base metal and petrochemicals were the main driving force behind the rally while bank and auto stocks drew little if any attention.

TEDPIX has grown more than two and a half times since the beginning of the current fiscal year that ends in  March. Market observers ascribe the huge growth in Tehran stocks to the inflow of fresh liquidity and increasing number of new investors, who channel new money into stocks because parallel markets remain sluggish.

Saeed Eslami, head of the Iranian Institutional Investors Association, said earlier that 15 trillion rials ($110 million) in fresh liquidity is injected into stocks every day.

Market Performance

The TSE's main index TEDPIX gained 11,927.60 points, or 2.67%, on Wednesday to end trading at 459,079.5.

About 6.99 billion shares valued at 37.92 trillion rials ($278.83 million) changed hands at TSE for the day.

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

International Construction Development Corporation was the biggest winner as its shares went up 6.2% to 3,287 rials per share.

Jooshkab Yazd Industries Company (electrical machinery company) incurred the biggest loss among all TSE-listed companies and went down 4.06% to 77,585 rials per share.

Iran Khodro Company (IKCO) contributed the most to the benchmark's fall, followed by Tejarat Bank, Iran Transfo Company and Esfahan Sugar Company.

Golgohar Mining and Industrial Company gave the biggest boost to the benchmark index, followed by Telecommunication Company of Iran, Pars Petrochemical Company and National Iranian Copper Industries Company.

The Price Index gained 3,183.43 points, or 2.67% to close at 122,505.4.

The Industry Index increased by 10,678.52 points or 2.68% to register 409,007.5. Free Float Index was up 14,598.22 points to hit 555,734.14.

TSE 30 gained 478.64 points to settle at 18,871.6 and the TSE 50 ended 458.81 points higher to finish at 17,243.9.

IFX Up 2.74%

Iran Fara Bourse main index IFX gained 155.01 points, or 2.74%, to close Wednesday trade at 5,815.66.

About 2.39 billion securities valued at 18.13 trillion rials ($133.35 million) were traded at the over-the-counter exchange for the day.

Esfahan Steel Company had the highest number of traded shares and trade value as 426.17 million of its shares worth 1.21 trillion rials ($8.91 million) were traded.

Damavand Power Generation Company, Pasargad Oil Company, Taliseh Nemooneh Dairy Farm Company and Tabas Parvardeh Coal Company had the most negative impact on IFX.

Goharzamin Iron Ore Company gave the biggest boost to IFX, followed by Esfahan Steel Company, Zagros Petrochemical Company and Middle East Mines and Mineral Industries Development Holding Company.