Commodities Lift Tehran Stocks

EghtesadOnline: Tehran stocks made solid gains on Sunday climbing more than 2.3% amid demand for a wide range of large-cap stocks.

News ID: ۷۸۵۳۹۸

17 February 2020

The main gauge of Tehran Stock Exchange, TEDPIX,  soared over 10,700 points for the day and stood at all time high of 472,479.86, according to Financial Tribune.

While stocks in steel, base metal, chemicals, refineries and petrochemicals were well-braced by investors, many small-cap stocks closed the session lower.

Sell-off in a number of the smaller listed companies sent the equal-weighted index lower at 1.6%. The index gives the same weight to all stocks irrespective of their market caps.

Out of a total of 311 active symbol tickers on Sunday, 216  finished trade in the green, and 109 closed at the maximum daily prices.

Inflow of fresh money from the ever-increasing number of new investors coming in droves over the past months is seen as the main driver of consecutive market rallies.

Observers say new liquidity has made correction in share prices short-lived, causing stock market to rally incessantly. Out of 18 trading sessions since the beginning of the current calendar month (on Jan.21), barely three session were closed in the red zone.

Apart from liquidity, observers ascribe the rallies to soaring currency prices, a factor that traditionally pushes up the price of export-oriented shares, including a large number of commodity stocks.

On Saturday, the US dollar gained against rial and crossed the critical level of 140,000 rials. The greenback was sold for 140,500 rials hitting a nine-month high, according to economic daily Donya-e-Eqtesad.

Market Performance

The TSE's main index TEDPIX gained 10,761.44 points, or 2.33%, on Sunday to end trading at 472,749.9.

About 9.54 billion shares valued at 47.21 trillion rials ($342.09 million) changed hands for the day.

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

Mashhad Wheel Manufacturing Company was the biggest winner as its shares went up 9.62% to 15,280 rials per share.

HiWeb Company (internet service provider) incurred the biggest loss among all TSE-listed companies and went down 7.25% to 10,389 rials per share.

Telecommunication Company of Iran contributed the most to the benchmark's fall, followed by Iran Khodro Company (IKCO), Tejarat Bank and HiWeb 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 Pars Petrochemical Company.

IFX Up 2.36%

Iran Fara Bourse main index IFX gained 139.59 points, or 2.36%, to close Sunday trade at 6,054.77.

About 2.88 billion securities valued at 25.43 trillion rials ($184.28 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 527.28 million of its shares worth 1.52 trillion rials ($11.04 million) were traded.

Goharzamin Iron Ore Company, Pasargad Insurance Company, Sarcheshmeh Copper Investment Company and Atieh Dadeh Pardaz Company had the most negative impact.

Marun Petrochemical Company gave the biggest boost to IFX, followed by Iran Office Machines Industries Company, Damavand Power Generation Company and Hormozgan Steel Company.