The Tehran market opened Sunday trading when many investors were expecting a correction as a selloff by shareholders. This mindset caused the market to shed more than 1,200 points in early trading but fundamental factors supporting the market helped reverse the bearish trend later in the day.
According to Donyaye Bourse website, the ongoing stock market rally is different from the one that lifted the markets last year. While the earlier rally was stoked by excitement and herd behavior, the current one is backed by fundamental factors like the global rally in commodities and oil as well as bullish foreign exchange rates.
According to oilprice.com, Crude oil prices are expected to finish the week higher, but the price action late in the week suggests the market may be getting a little too heavy, Financial Tribune reported.
Early in the week, crude oil surged to a five-month high and continues to hover around these levels, however, new concerns over future demand have slowed down the upside momentum on the daily chart.
Different Indexes
Tehran Stock Exchange’s main index TEDPIX gained 882.22 points or 0.45% on Sunday to end trading at 196,084.9.
More than 2.85 billion shares valued at 9.46 trillion rials ($67.61million) changed hands at TSE for the day.
Trading at TSE and Iran Fara Bourse starts on Saturday and ends Wednesday.
Behshahr Industrial Company was the biggest winner as its shares went up 12.26% to 4,543 rials per share.
Founded some 67 years ago, Behshahr Industrial Company is the first and largest producer of Edible Oils & Fats in Iran.
Hegmatan Sugar Co. incurred the biggest loss among all TSE-listed companies and went down 6.17% to 18,848 rials per share.
Mines and Metals Development Investment Company (MMDIC) and Parsian Gas and Oil Company gave the biggest boost to the benchmark index, followed by Mapna Group and Bandar Abbas Oil Refining Company.
MAPNA is a leading company in the power plant industry with capabilities in technology transfer, manufacture of main equipment for thermal power plants, project management and execution, and investment.
Persian Gulf Petrochemical Industries Company contributed the most to the benchmark's fall, followed by National Iranian Copper Industries Company and Bank Mellat.
The Price Index gained 254.46 points to close at 56,544.5. First Market Index was up 1,076.68 points to post 146, 500.7.
The Second Market Index decreased by 247.85 points to reach 380,080.2. Industry Index went up by 933.34 points to register 176,910.3.
The Free Float Index was up 1,058.09 points to register 221,493.64. TSE 30 went up 41.20 points to settle at 9,664.5 and the TSE 50 ended 33.20 points higher to finish at 8,289.7.
IFX Down 0.86%
Iran Fara Bourse’s main index IFX lost 21.21 points or 0.86% to close Sunday trade at 2,451.91.
Over 1 billion securities valued at $35.18 million were traded at the junior exchange for the day.